NEW YORK: Shareholders will pocket US$9.2bil more from Standard & Poor’s 500 Index companies in the next year, thanks largely to President George W. Bush’s dividend tax cut. To some investors, the increase suggests further gains are ahead for US stocks.
Since Bush signed the tax reduction into law in May, 54 members of the S&P 500 have either raised quarterly dividends or started making a payout, according to Bloomberg data. AT&T Corp, Citigroup Inc and Wells Fargo & Co are among them, and the average increase has been 28%.