U.S. companies have already slashed $40.7 billion in dividends in 2009, topping last year's $40.6 billion in just over two months.
No bank now ranks among the top 30 dividend-paying companies in terms of total dollars. Financial companies pay out only 11% of dividend income vs. more than 30% before the credit crisis hit, says S&P analyst Howard Silverblatt.
Dividends among S&P 500 companies are on track to fall 22.6% in 2009, the most since 1938, with many more cuts likely. The pain has spread from shareholders in banks to investors in auto, consumer discretionary and other stocks.
This shouldn't be a surprise. But it is another reason for more investors getting out of the market.
