Q2 Corporate Profit Up 3.9%

Second-quarter adjusted corporate profits increased $78.3 billion (3.9%) quarter-over-quarter, according to a Commerce Department estimate (link opens as PDF) released today.

After dropping off a revised 1.3% in Q1, this latest report puts profits back on the growth track.

While taxes on corporate income took a 2.6% rise for this quarter, net dividends shot up 35.9% ($273.8 billion) quarter-over-quarter and 40.3% year-over-year. This quarter's dividend increase comes primarily from Fannie Mae's distributions to the federal government. Fannie Mae has paid around $105 billion back to the government to offset the $117.1 billion it received during the Great Recession.

After-tax unadjusted profits managed a 2.6% increase for the quarter and a 5.8% increase year-over-year. At an industry level, financial corporate profits increased $14.3 billion quarter-over-quarter after a $4.1 billion slump in Q1. Nonfinancial corporations made even larger gains, boosting profits $50.4 billion, compared to a $3.1 billion loss the previous quarter.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2616078, ~/Articles/ArticleHandler.aspx, 10/1/2016 5:19:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 8 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes