Unexpectedly Intriguing!
06 February 2024
Cash Dividends by Nick Youngson on Picpedia.org - https://www.picpedia.org/chalkboard/c/cash-dividends.html

January 2024 was a lackluster one for the dividend paying firms of the U.S. stock market. Starting with the bad news, the number of favorable changes for dividends was down both month-over-month and year-over-year and the number of unfavorable changes were up month-over-month.

The good news is that the number of unfavorable changes in January 2024 was down significantly year-over-year. That improvement is largely an outcome of 2023 having been a better overall year for dividend paying firms than 2022 had been.

Perhaps the best evidence for how lackluster the month was can be found in the numbers of dividend winners and losers. The number of firms announcing dividend increases rose month-over-month, but so did the number of firms announcing dividend cuts. Year-over-year, the number of dividend rises fell and so did the number of dividend decreases.

The following chart presents 20 years worth of monthly dividend increases and decreases, as reported by Standard & Poor for each month from January 2004 through January 2024.

Number of Public U.S. Firms Increasing or Decreasing Their Dividends Each Month, January 2004 through January 2024

Meanwhile, the dividend metadata for January 2024 is provided in the following table, which also shows how all the indicated stats have changed since last month and since January 2023.

Dividend Changes in January 2024
   Jan-2024  Dec-2023    MoM  Jan-2023    YoY
Total Declarations 3,120 5,405 -2,285 3,127 -7
Favorable 200 239 -39 221 -21
- Increases 154 121 33 168 -14
- Special/Extra 46 118 -72 48 -2
- Resumed 0 0 0 ◀▶ 5 -5
Unfavorable 15 8 7 65 -50
- Decreases 15 8 7 65 -50
- Omitted/Passed 0 0 0 ◀▶ 0 0 ◀▶

Our sampling of dividend decrease announcements covers eight of the reported fifteen dividend reductions for January 2024. Three of the eight dividend reducing firms are oil and gas sector companies that pay variable dividends, where this total is well below the threshold that indicates an elevated level distress for that industry and falls within its typical background noise. Two of the announced dividend cuts are for banks, pointing to ongoing trouble for regional banks following 2023's bank failures. The remaining firms in our January 2024 sample include firms in the healthcare, materials, and real estate sector. The latter of these is an office-REIT (real estate investment trust), which represents continuing difficulties for the commercial portion of the real estate industry as we enter 2024. Here is the short list of dividend decreasing firms, clicking the name of the company will take you to the news source indicating the negative dividend change for shareholders:

Our sample of November 2023's dividend declarations includes 12 of the 15 announced unfavorable changes. Here's the list for the month:

The industries that recorded dividend reductions in January are the ones to pay attention to during the first half of 2024. The banking industry in particular stands to benefit from interest rate cuts that are expected later in the year, but the longer the Federal Reserve puts off cutting rates, the more trouble it may be for this sector of the economy. Not to mention other industries whose positive business outlook relies in any way on interest rates coming down substantially.


Standard and Poor. S&P Market Attributes Web File. [Excel Spreadsheet]. 1 February 2024.

Image credit: Cash Dividends by Nick Youngson on Picpedia.org. Creative Commons CC-BY-SA 3.0. Alpha Stock Images.


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

Thanks in advance!

Recent Posts

Indices, Futures, and Bonds

Closing values for previous trading day.

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


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

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified