WisdomTree conducts the annual rebalance of its U.S. dividend Index family in December of each year, with the screening date occurring on the last trading day of November.1 The annual screening process provides a plethora of data about how dividends for the U.S. equity markets have changed over time and presents important information about the underlying market fundamentals. In the table below, we look at the Dividend Stream® for the WisdomTree Dividend Index, WisdomTree’s broadest and most inclusive dividend Index.
Dividends, a key gauge of the market’s underlying fundamentals, continue to reach new highs, but the growth in the upcoming year’s dividends—measured by our indicated Dividend Stream—points to the slowest growth in dividends since 2010.Â
WisdomTree Dividend Index (WTDI) Dividend Stream
Visit the WisdomTree Dividend Index page for current holdings.
Highlights of This Year’s Rebalance:
• Record Dividend Stream: 2016 marks the seventh consecutive year of growth for the U.S. Dividend Stream and a new high—58% above the mark set in 2007. Although the growth was positive, this was the first time in seven years that dividend growth wasn’t above  its longer-term average of 5.6%. The Dividend Stream, which considers both shares outstanding and dividends per share, was biased downward due to the reduction in shares outstanding (approximately 1.5% in aggregate). Adding back the 1.5% share reduction can get you closer to an aggregate 5% growth per share.2
• Financials Displayed Highest Growth: The sector has grown its dividends more than 8.5% since last year’s screening and has averaged almost 19% growth per year since hitting bottom in 2009. Also, the Financial sector’s dividends just eclipsed their previous high set in 2007—the last sector to do so. Growth was led by Citigroup and Bank of America, which grew their indicated dividends per share by 220% and 50%, respectively.
