A Foolish Take: Dividend Growth Is Finally Slowing
Dividends are the lifeblood of income investing. With interest rates as low as they've been, it's hard for those who need steady income from their portfolios to rely on fixed-income securities like bonds or bank CDs to give them the cash flow they need. Dividend stocks have been the answer for many investors, and what's best for shareholders is when those dividend payments rise steadily over time.
Overall, the healthy U.S. stock market has been good about giving investors the dividend increases they want. However, the trends haven't been as favorable in 2019 as they were last year. As S&P Dow Jones Indices just revealed, the net increase in quarterly dividends paid by U.S. stocks for the three months ending Sept. 30 was down year over year, falling to $14.6 billion from $19.2 billion in Q3 2018. That marked the third quarter in a row of declines compared to previous-year figures.
Data source: S&P Dow Jones Indices. Chart by author.
Source Fool.com
