S&P Global Stock Soars 3.29% on Manufacturing PMI Data

On April 8, 2025, S&P Global's stock surged by 3.29% in pre-market trading, reflecting a strong start to the day's trading session.

In March 2025, the S&P Global US Manufacturing PMI stood at 50.2, slightly above the preliminary estimate of 49.8 but below February's final value of 52.7. This indicates a modest improvement in business conditions, although it marks the weakest expansion seen so far this year. Production levels declined for the first time since December 2024, following a robust increase in February driven by efforts to preemptively address tariffs. New orders saw a slight increase, while employment remained stagnant after four consecutive months of growth. Input cost inflation reached its highest level since August 2022, and output price inflation accelerated to a 25-month high. Business confidence hit its lowest point since December 2024, weighed down by uncertainties surrounding federal government policies.

S&P Global Inc. is recognized as one of the top dividend kings, known for its consistent dividend growth. Dividend stocks, including S&P Global, have historically shown better performance and lower volatility compared to non-dividend-paying stocks. According to Nuveen, dividend growth stocks delivered an average annual return of over 10% from 1973 to 2024, outperforming non-dividend-paying stocks which returned 4.2% during the same period. Dividend stocks have also played a significant role in the market's overall return, with dividends and reinvested dividends accounting for nearly 40% of the market's return from 1930 to 2024. This highlights their importance, especially during economic downturns.

S&P Global offers a modest dividend yield of 0.85% with a payout ratio of 29.47%, indicating a conservative approach that leaves room for potential growth. The company's dividend payout ratio of 31.09% is considered healthy and sustainable, well below the 75% threshold. This suggests that S&P Global is well-positioned to continue its dividend payments, providing a reliable income stream for investors.