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Many of them grow, and thereby increase their payouts, through acquisitions.
But with assets growing rapidly, foundations are under increasing pressure to distribute larger percentages.. "Foundations were established with the purpose of making grants and doing good, not investment banking," said Terry Odendahl, executive director of the National Network of Grantmakers in San Diego, which has urged foundations to increase their payouts.
That compares with 59 S.& P. 500 companies that have trimmed or eliminated dividends over the same period, according to S.& P. Companies that have managed to increase their payouts in this tough economic climate may be a good target for a time-tested conservative investment strategy: buying shares of solid dividend-payers.
Despite a pension investigation by the New York attorney general, an audit concluding that some police officers in the city broke overtime rules to increase their payouts and the mayor's statements that future pensions should be based on regular pay, not overtime, these practices persist in Yonkers.
That story ran one day after a front-page Wall Street Journal article that spelled out how sweet just one of the Bush tax cuts has been for those in the upper brackets: "The federal tax cut, which slashed the tax rate on dividends and prompted many companies to increase their payouts, is proving to be a boon for some corporate executives who are reaping millions in after-tax gains".
These days you won't find many specialty retailers willing to increase their payouts.
Thanks to a lower tax rate on dividends, several major U.S. companies increased their payout in the past year.
Foundation growth during the years in which the DeMarche study was conducted was so robust that the researchers acknowledged that foundations could have increased their payout rates to 6.5percentt with minimal to no impact on their corpuses.
While many companies increased their payouts, 101 American companies decreased or suspended dividends in 2011, the fewest since 2006.
Since January, 136 companies in the Standard & Poor's 500-stock index have either increased their payouts or initiated new dividends, collectively bolstering payments by $11 billion this year.
Responding directly to lower taxes on corporate dividends, several major corporations significantly increased their payouts.
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