Unexpectedly Intriguing!
December 2, 2016

In November 2016, 29 U.S. firms announced they would be cutting their dividend payments to investors. The month marks the 37th consecutive month in which the number of dividend cuts has exceeded a threshold that is consistent with recessionary conditions being present in the U.S. economy, and the 16th of 23 times since January 2015 where the number has exceeded a level that indicates some degree of contraction occurring within the U.S. economy.

Number of Public U.S. Companies Posting Decreasing Dividends, 
January 2004 through November 2016

From what we can tell from our near-real time sampling of announced dividend cuts, most of the distress leading firms to announce dividend cuts is increasingly becoming concentrated in the financial sector of the U.S. economy, although the oil production sector remains elevated as well.

But there is good news to report as well. The number of dividend increases announced during the month of November 2016 showed a year over year increase over November 2015, which is only the second time since August 2015 where that has happened, breaking a downtrend for this measure of relative economic health.

Number of Public U.S. Companies Increasing or Decreasing Their Dividends, 
January 2004 through November 2016

It will be interesting to see what develops during December 2016, as the Federal Reserve has all but 100% committed to hiking short term interest rates that month, even though their previous actions to do so has coincided with increased dividend cuts announced by interest-rate sensitive U.S. firms, such as mortgage-related Real Estate Investment Trusts (mREIT).

Data Sources

Standard & Poor. Monthly Dividend Action Report. [Excel Spreadsheet]. Accessed 1 December 2016.

Labels:

About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Applications

This year, we'll be experimenting with a number of apps to bring more of a current events focus to Political Calculations - we're test driving the app(s) below!

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button

JavaScript

The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links
Charities We Support
Recommended Reading
Recommended Viewing
Recently Shopped

Seeking Alpha Certified

Archives
Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.