In 2013 companies in the S&P500 index will pay off record high dividends to the shareholders in the amount of $300 billion compared to $282 billion dished out last year, The Wall Street Journal reports.
Apple and Exxon Mobil are set to pay out about $10 billion.
In February, American companies plan to buy back $117.8 billion of their shares, the highest monthly total in records since 1985. Home Depot, General Electric and PepsiCo are reported to scoop up their shares.
130 corporations announced stocks buying in February against 68 the previous month. According to Bloomberg, the U.S. banks are also expected to boost dividends. 6 largest financial organizations, including Citigroup, Bank of America, JP Morgan and Wells Fargo are said to pay $41 billion to their shareholders. However, they have to get the Fed’s approval first.
Large payouts have fueled the U.S. stock market. Thus, S&P advanced from 1512 to 1544 or 2%, Dow Jones Industrial climbed to 14329.5 from 13986 or 2.45% while Nasdaq increased from 3224 to 3232 or 0.24%.
