Dividend Macro Overview: December'24
Our latest MaxDividends Macro Report for December 2024 is out! 🔥
Hey Dividend Investors!
Ever wondered how to keep your portfolio growing with minimal effort? Our latest MaxDividends Macro Report for December 2024 is out, and it's packed with insights that could change the way you invest.
Dividend Macro Overview: December'24
Dividend Macro Highlights: Global Dividend Trends
The cumulative global dividend payout for Q3 2024 continued the upward trend of Q3 2020.
This suggests that most dividend companies have calmly endured the effects of the 2020 crisis and adapted their businesses to the new reality. As a consequence, they continued to increase their dividend payouts.
Companies paid out $431.1 billion in dividends in the third quarter of 2024. For comparison, in Q3 2023, companies collectively paid out $418.2 billion (Figure 1).
Regional Dividend Leaders
The dividend growth leaders in the third quarter were Japan, Emerging Markets and North America. They showed an increase of 14.4%, 8.9% and 8.7%, respectively.
Among those regions that showed negative dynamics in dividend growth, Asia Pacific ex Japan is the leader. The drop in dividend payments was 9.9%, respectively
U.S. Dividend Landscape (S&P 500)
The dividend yield of the S&P 500 has halved over the past 10 years. It is now 1.21%, which suggests that the price of stocks relative to dividends is higher than normal. Therefore, dividend yield is at a lower lows.
Inflation's Impact on Dividends
Inflation growth rate is high and exceeds the rate of dividend growth. Therefore, the S&P 500 dividend chart is showing a correction.
However, high inflation will not hold forever. Once the correction ends, the chart will turn around again. Thus, over the last reporting periods, inflation has been steadily declining.
S&P 500 Historical Dividend Trends
Historical dividends from stocks that are part of the S&P 500 Index are shown in Figure 5.
The data are adjusted for inflation. At the current inflation rate (Figure 4), there is a gradual acceleration in the growth of dividends on the S&P 500 index. The previous peak was in May 2020, when dividend was 73.09. At the moment, this figure is 73.40.
S&P 500 Dividend Growth
The S&P 500 dividend growth is shown in Figure 6. Over the past 32 years, the chart has been negative only three times.
All of those periods were associated with crises. Over the last month, dividend growth has outpaced inflation to 5.90%.
However, over the past 12 months, these indicators almost always show the same dynamics.
The Most Solid Dividend Hikes of Previous Month
Visa (V) +13.46%
American Financial Group (AFG) +12.68%
Brown & Brown (BRO) +15.38%
ConocoPhillips (COP) +34.48%
CRA International (CRAI) +16.67%
CSW Industrials (CSWI) +14.29%
D.R. Horton (DHI) +33.33%
Comfort Systems USA (FIX) +16.67%
TFI International (TFII) +12.50%
More Recent Dividend Events
A Deep Dive into Recent Dividend’s Universe Events
Generating passive income is a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Reliable, carefully selected companies with growing solid dividends become the basis for long-term growth of dividend income. Reinvestment accelerates this process.
Last week we did a great job and released a great article about great companies. If you haven't read it yet, here it is
👉 Century-Old Dividend Titans
And one week before, also post about dividend investing as the way to live off your accumulated assets
👉 Why Living Off Dividends Beats Selling Stocks for a Chill Retirement
Now, let’s dive into the biggest movers and those getting ready to pay you in the coming days.
Top Gainers of the Week: MaxDividends Top Stocks
Top Dividend Stocks picked by MaxDividends Team
+13,62% Deere & Company
Deere & Company (NYSE: DE) is all about powering agriculture and rewarding shareholders. They’re paying $5.88 annually per share, which gives a 1.29% dividend yield—not huge, but consistent.
What’s impressive is their 20.51% dividend growth rate over the last three years, showing they’re serious about keeping investors happy.
And with a payout ratio of just 22.97%, they’ve got plenty of room to reinvest in the business while still sharing profits.
+33,17% William Sonoma
Williams-Sonoma (NYSE: WSM) knows how to treat its investors. They’re paying $2.28 a year per share with a yield of 1.30%.
For 19 years straight, they’ve been upping that payout, with a killer 20.88% growth rate over the last three years.
And with a payout ratio of just 26.97%, they’re nowhere near overextending—leaving room to grow.
Dividend Hike of the Week: Brown Forman (BF-B)
Dividend Increase: +4.00%. 41 Consecutive Year of Dividend Increases.
Brown‑Forman Toasts to 41 Years of Dividend Growth with a 4% Hike!
Brown‑Forman Corporation (NYSE: BFA, BFB), the company behind your favorite spirits like Jack Daniel’s, is keeping the dividend streak alive!
For the 41st consecutive year, they’ve bumped their quarterly cash dividend by 4%, raising it from $0.2178 to $0.2265 per share on both Class A and Class B common stock.
At MaxDividends, we’ve built a straightforward system for investing in dividend growth stocks. It’s not just about showing you why this approach is one of the simplest and most rewarding ways to invest—we also break down the easy steps to get started.
My Investments This Week
This week I added new stocks to my portfolio. Every Friday I make regular purchases of high growing dividend stocks to my dividend portfolio. I create growing passive income from stock dividends so I can live off dividends.
In November, I got all the dividends I was expecting. Come December, I’ll reinvest them and snag even more shares. That means my passive income from dividends is about to get an upgrade!
My companies help me so that my passive income from dividends grows faster.
Here is one example of how it works
On October 30, Abbvie Inc. announced a 5.8% increase in dividends. Now I receive more passive income from dividends as Abbvie shares holder. My income grows while I calmly do my favorite things. No fuss.
I continue to move forward with my dividend passive income growth plan. Every month my passive dividend income grows and my goal gets closer.
My goal is to live off dividends and continue investing in stocks.
The total amount invested in my High Yield Dividend Growth portfolios is ~$267,672.10
👉 My Dividends Portfolio recent Friday’s purchases
Dividends provide a constant source of passive income, which makes dividend stocks an attractive option for conservative investors and those who are not ready to spend time on constant market monitoring.
At this stage in my life, predictable growing passive income is more important than the long-term price appreciation of stocks, because I plan to live off the dividends. And this is where MaxDividends shows its value.
Happy dividends for all the holders!
Best regards, Max
MaxDividends Idea: Retire Early & Live Off Dividends
💡 My Own High Yield Dividend Growth story. $12,000 monthly for 120 months
Every Friday, I share with MaxDividends Members my weekly buys in real-time to show my journey toward living off dividends.
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