Visitors Now:
Total Visits:
Total Stories:
Profile image
By Political Calculations (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

2016-Q4 Off to Similar Start as 2016-Q3

Monday, October 31, 2016 18:09
% of readers think this story is Fact. Add your two cents.

(Before It's News)

We're awaiting S&P's month end official tally of the number of dividend cuts in October 2016 later today, but until then, we do have a sense of the relative health of the private sector of the U.S. economy from our real time sources that report the dividend declarations of U.S. firms. Our first chart reveals what they indicate for how 2016-Q4 is playing out so far, as compared to the previous three quarters (2016-Q1, 2016-Q2 and 2016-Q3):

B4INREMOTE-aHR0cHM6Ly8xLmJwLmJsb2dzcG90LmNvbS8tQ0pKdFRvSFlaZjAvV0Jmak1BOERBMUkvQUFBQUFBQUFPTkkvelNaenhZZ2N1Vm93YXJuQVMtU0VRMFF0ZExEdHlnWUtBQ0xjQi9zMTYwMC9jdW11bGF0aXZlLWFubm91bmNlZC1kaXZpZGVuZC1jdXRzLWluLVVTLWJ5LWRheS1vZi1xdWFydGVyLTIwMTYtUTF2UTJ2UTN2UTQtc25hcHNob3QtMjAxNi0xMC0zMS5wbmc=

We first confirm that recessionary conditions continue to be present within the U.S. economy, but at a reduced level with respect to the first two quarters of 2016. They are however consistent what what we observed through the same point of time in 2016-Q3, which would so far appear to have seen the strongest growth in the year to date.

We also confirm year over year improvement in economic performance through our chart comparing the current quarter to date against the number of dividend cuts that was recorded through this point of time in 2015-Q4.

B4INREMOTE-aHR0cHM6Ly8yLmJwLmJsb2dzcG90LmNvbS8tRnRDbFF3SXlTUzgvV0JmbEtjT0RCTkkvQUFBQUFBQUFPTlEveHJnR3oyWmVBSmdla3NoUjlHc2F4Vk0zUjV4dnZ6N0NnQ0xjQi9zMTYwMC9jdW11bGF0aXZlLWFubm91bmNlZC1kaXZpZGVuZC1jdXRzLWluLVVTLWJ5LWRheS1vZi1xdWFydGVyLTIwMTVRNC12cy0yMDE2UTQtc25hcHNob3QtMjAxNi0xMC0zMS5wbmc=

The reason for the improvement is fairly straight forward – there is considerably less distress in the oil production sector of the U.S. economy thanks to relatively higher oil prices, which bottomed in February 2016, and have since recovered to today's level near $50 per barrel.

Consequently, there are a lot fewer oil producing firms announcing that they need to cut their dividends these days. Then again, there are also fewer oil producing firms these days.

Data Sources

Seeking Alpha Market Currents. Filtered for Dividends. [Online Database]. Accessed 31 October 2016.

Wall Street Journal. Dividend Declarations. [Online Database]. Accessed 31 October 2016.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.