Dividend Macro Overview: November'24
Our latest MaxDividends Macro Report for November 2024 is out! 🔥
Hey Dividend Investors!
Ever wondered how to keep your portfolio growing with minimal effort? Our latest MaxDividends Macro Report for November 2024 is out, and it's packed with insights that could change the way you invest.
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Dividend Macro Highlights
Global Dividend Trends
The cumulative global dividend payout for Q2 2024 continued the upward trend of Q2 2022.
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 $606.1 billion in dividends in the second quarter of 2024. For comparison, in Q2 2023, companies collectively paid out $572.7 billion (Figure 1).
Regional Dividend Leaders
The dividend growth leaders in the second quarter were UK and Europe ex UK. They showed an increase of 13.8% and 7.7%, respectively.
Among those regions that showed negative dynamics in dividend growth, Asia Pacific ex Japan is the leader. The drop in dividend payments was 5.1%, 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 1.24%, 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
Accenture plc (ACN) 14.73%
Microsoft Corporation (MSFT) 10.67%
City Holding Company (CHCO) 10.49%
First United Corporation (FUNC) 10.00%
For your convenient reading, we have prepared a PDF version of the Global Dividend Review report. You can download it and study it at any time convenient for you.
More Recent Dividend Events
A Deep Dive into Recent Dividend’s Universe Events
Let’s continue with a deep dive into the macro stats on dividend stocks, with interesting analytics breakdowns by segment, an overall market recap, and of course, a detailed analysis of this month's top stock ideas—check it out below!
MaxDividends companies kept paying dividends and even raised them through tough financial times. That fact alone shows the resilience of well managed dividend paying companies.
To focus on what we love, we need stop worrying about daily expenses. For me, the solution was creating a growing passive income stream through dividend stocks.
Let’s dive into the biggest movers and those getting ready to pay you in the coming days.
Top 3 Gainers of the Week: MaxDividends Top Stocks
Top Dividend Stocks picked by MaxDividends Team
+15,51% Matson Inc
Matson Inc. (NYSE: MATX) is steady with its dividends, currently offering a 0.89% yield.
They’re paying $0.34 per share quarterly, adding up to $1.36 annually. Matson’s kept up dividend increases for 13 straight years, showing real consistency.
With a low payout ratio around 14.93%, they’ve got room to keep growing that payout.
+10,79% LeMaitre Vascular Inc
LeMaitre Vascular (NASDAQ: LMAT) is all about steady payouts. They’re dropping $0.16 per share every quarter, so that’s $0.64 a year, with a yield sitting around 0.67% .
Not huge, but here’s the kicker—they’ve upped that dividend for 13 years straight. And with a payout ratio of 35.15%, they’re not stretching their cash too thin, keeping enough in the tank to keep things growing.
+9,14% Alamo Group Inc
Alamo Group (NYSE: ALG) might not be the flashiest stock out there, but they’re as steady as it gets. Right now, they’re handing out $0.26 per share every quarter, which totals up to $1.04 per year — a yield of around 0.61%.
They’ve upped that dividend for 9 years straight — not bad for an industrial company that’s all about machinery. And get this: with a payout ratio under 10%, they’re keeping plenty of cash on hand for growth while still rewarding shareholders.
Dividend Hike of the Week: Visa Inc (V)
Dividend Increase: +13.46%
Visa (NYSE: V) just gave shareholders something to celebrate with a 13.5% hike in its quarterly dividend, bringing it up to $0.59 per share — that’s $2.36 a year and a yield of around 0.72% .
It’s the 16th year in a row that Visa’s upped its payout, keeping a streak that makes it a pretty reliable choice. And with a payout ratio of just 21.38%, Visa’s playing it smart—growing that dividend without going overboard, while keeping cash handy for big moves.
My Plans for This Week
This week I plan to make regular purchases in a portfolio of high growing dividends, reinvest the dividends I received in October.
We have already prepared the Top 5 Dividend Ideas for November. We will publish them Today.
The link below provides a full version of the Top 5 Dividend Ideas of the Month report.
This is a full analytical report with detailed information on each company that we selected and a more detailed market overview.
The Top 5 Stocks are a great place to start or get ideas for both new and experienced dividend investors.
Every month we break down 5 great companies, analyze the business in depth, and publish the most important information for you in simple words and charts.
The Top 5 companies are our favorites of the month for dividend growth strategies. They are great choices for the best dividend investors.
For ease of reading, we have posted the report in PDF format. Enjoy! 🙌
Also, MaxDividends Team have published the second issue of the Ultra High Dividends column, here it is
👉 Ultra High Yield Dividend Portfolio & Stocks. 05/11/2024
And more glorious dividend content this week!
A review of the premium dividend idea of a leading producer of premium distilled spirits, branded spirits, and food ingredient solutions is on the go. Will be published on Friday evening.
On Saturday I will tell you about one interesting update in the MaxDividends app, which we are already testing!
🔥 How do you feel about me making a general review of my portfolios for October?
Let me know if you are interested. I wanted to conduct a survey, but it seems that this function does not work in Substack.
So just write to me personally or in the chat if you are interested in reading such a review.
The total amount invested in my High Yield Dividend Growth portfolios is ~$212,740.64
👉 Max 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.
MaxDividends Key Concept
Predictability in important things is the foundation of peace of mind. Peace of mind is the basis of financial well-being. MaxDividends is all about peace of mind.
👉 Full list of MaxDividends Stocks ( ✅ USA & ⏳ Global)
At MaxDividends, we focus on a dividend growth strategy. It’s a great fit for investors who want capital appreciation, a decent level of safety, and growing income.
As the name suggests, dividend growth investing is all about finding stocks that pay dividends and can keep growing them over time.
This is how Max Dividends operates: No worries about price fluctuations, no concerns about stock market noise.
Happy dividends for all the holders!
Best regards, Max
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