MW: S&P 500 dividends expected to see worst fall since 1942
Standard & Poor's Index Services said Friday it expects dividends for components of its S&P 500 Index to drop 13.3% this year. It would be the worst annual decline since 1942 when dividends fell 16.9%, S&P said. It cited a forecast for a $24.60 dividend rate, which would translate into an expected $214.66 billion in payments for S&P 500 companies in 2009, down from $28.39, or $247.9 billion, paid in 2008. "Unless companies believe that their financial future will improve, their need to conserve cash will outweigh their desire to pay dividends," said S&P senior index analyst Howard Silverblatt.
