Standard & Poor’s reported that there were 167 dividend increases in December, a 22.8% increase from the 136 increases reported in December 2003, as well as a 12.1% gain from the average number of December increases over the past decade.

The S&P Dividend Record reports on more than 23,00 securities, listed on U.S and major Canadian exchanges.

Extra dividends for the month totaled 172. This represented a 19.7% decline from December 2003, which saw the greatest number of extra payments in the final month of the year since 1989. S&P data also show that there were five unfavorable dividend actions last month, half the number reported in December 2003. Three companies reduced their dividends, and another two omitted them. In December of 2003, there were five decreases and five omissions.

For the full year 2004, there were 1,745 dividend increases, a 7.1% increase from 2003. The total number of 2004 dividend increases is very close to the 10-year average of 1,759. The 2004 total of dividend increases was the highest since 1998.

“Although extra payments were lower than last year, December dividend increases were encouraging in 2004,” said Joseph Lisanti, editor-in-chief of Standard & Poor’s newsletter The Outlook. “Full-year dividend increases show a greater willingness on the part of U.S. corporations to reward their shareholders. With corporations sitting on billions of dollars in cash, and dividends taxed at low rates, Standard & Poor’s expects even more increases in 2005.”