Sunday, July 21, 2019

S&P 500 dividends are seen pointing to earnings revival

U.S. companies are showing the kind of confidence that points toward a rebound in earnings growth, according to Jim Paulsen, Leuthold Group Inc.’s chief investment strategist. Paulsen cited the relationship between dividends and earnings on the S&P 500 Index in a report Friday. Payouts increased 7.5% on a per-share basis from Sept. 30 through Friday even though profit only rose 1.1%, according to data compiled by Bloomberg. “So far, companies seem confident in their future earnings potential,” Paulsen wrote.


For a related Bloomberg commentary, click here.

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