US corporates may not historically be known for their dividend-paying culture but a sea change in company attitudes has seen things start to change.
October 2012 marked the first time since 1999 that there were more than 400 dividend paying companies in the S&P 500 index. In fact, 403 issues in the S&P 500 now pay a dividend representing 88% of total market capitalisation, while 2012 should see a record high for cash dividend payments, estimated at 12%-14% above that of 2011. The relative strength of US balance sheets is one reason for this shift in attitude. Post crisis de-leveraging has meant the net cash position of S&P 500 companies has reached a record high level. Impact on share price Jim Cullen and John Gould, portfolio m...
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