Financial Sector Regains S&P 500 Dividend Crown After Stress Tests
March 16, 2015
When the Federal Reserve Bank approved the post-stress test capital plans for 28 of the 31 banks subject to the Comprehensive Capital Analysis and Review (CCAR), it set off a flurry of announcements of dividend increases and share repurchases that lit up the tape. All told, 20 banks and financial firms from the S&P 500 announced dividend increases within a few hours of receiving Fed approval, ranging from a 4.1% rise for US Bancorp to a whopping 400% increase for Citigroup.
Significantly, the increases mean the financial sector is once again the largest dividend-payer in the S&P 500, a status it hasn’t enjoyed since 2008, accounting for 14.7% of expected dividend payments this year.
Click here to read the entire article by Reality Shares CEO Eric Ervin at TheStreet.com.
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S&P 500: A broad stock market index based on the market capitalization of 500 large companies having common stock listed on the NYSE or NASDAQ. The S&P 500 was developed and continues to be maintained by Standard & Poor’s Financial Services LLC, and is considered to be a bellwether for the US economy.
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