Global Dividend Update

Seeking AlphaFinancial Advisor | Dividend StrategyGlobal Dividend UpdateJul. 3, 2020 9:28 AM ET|| Includes: BA, PCGby: WisdomTreeWisdomTree Asset Management/ETF Provider, Currency, Global Equities, fixed incomeWisdomTree Blog.cls-1{fill:#024999;}SummaryDividend suspensions for large U.S. companies are typically rare events. Over forty S&P 500 companies have announced suspensions this year alone.
Despite the U.S. experiencing historic dividend cuts in just a few months' time, it has fared better than most major international markets.
Suspensions and dividend cuts that were announced in the first half of this year will weigh on S&P 500 dividends during the second half of the year.
, Senior Research Analyst
Dividend payouts have been under pressure globally.
Dividend suspensions for large U.S. companies are typically rare events. Boeing's (NYSE: BA) dividend suspension announcement in March was the first for an S&P 500 constituent since PG&E (NYSE: PCG) in December 2017.1 Over forty S&P 500 companies have announced suspensions this year alone.
Despite the U.S. experiencing historic dividend cuts in just a few months' time, it has fared better than most major international markets.
Suspensions and dividend cuts that were announced in the first half of this year will weigh on S&P 500 dividends during the second half of the year. But through June, dividends were modestly above last year's payouts over the same period.
Japan's payouts are down roughly 5%. By comparison, Europe dividends have been nearly cut in half.
Dividend Income on Investment of 10,000 for First Six Months - January through June

Let's review some of the main drivers of differences across regions that have contributed to the relative resilience of markets like the U.S. and Japan as compared to Europe.
1. Payout Ratios
Dividend payout ratios are highest in Europe (60%) and lowest in Japan (30%)-higher payouts provide less room to... Read more