Sharing the wealth: Dividends are back

S&P 500 dividends per share, which hit a recent low in 2010, are forecast to grow at an annual rate of 9.8% over the next three years, driven by strong earnings and large cash reserves.

Year-over-year dividend increases are up 57.1%, while decreases and omissions are down 81.7% and 74.8%, respectively.

Financials are set to regain their status as the largest contributor of dividends in the S&P 500. In 2007, before the financial crisis, they accounted for 29%; that dropped to 9% in 2010.

Estimated incremental dividends announced since the Fed's March 18 decision to allow certain banks to raise dividends will result in almost 3% of total 2010 dividends paid by S&P 500 companies.