jIMOh
Thinks s/he gets paid by the post
This can't be right. In 2007 the Vanguard S&P 500 index fund (VFINX) paid a per-share dividend of 2.49. In the first three quarters of 2008 the fund has paid a dividend of 1.81. So even if the fund paid no dividend (which it won't) for the fourth quarter of 2008, the yearly dividend would be down 27% (not 33%) from last year.
BTW, for the first three quarters of 2008, the dividend was actually 4% above that of 2007 (1.81 vs 1.74).
Please know I read something about the dividend payout of the S&P 500 dropping. Because payout can only be measured going forward, I would expect it would lag in mutual fund performance (if a company just announced a dividend cut, it would not be seen in yearly payout until 2009, correct?). In addition because people use various statistics what you might see as a drop of one thing, another reporter might take that as a drop in something else.
For example in one of below articles I think I read about a 10% drop in payout. If last year payout dropped 7.5%, then this year it dropped 10%, 2.5/7.5=33% which meant the payout percentage dropped by 33% but not the payout itself.
Here are some links from a yahoo search "2008 dividend payout of S&P500".
S&P 500 firms cutting dividends | Philadelphia Inquirer | 10/22/2008
Good-bye, corporate dividends - Financial Week
reportonbusiness.com: S&P 500 4th-quarter dividend dive likely to be worst in 50 years
It appears all 3 articles suggest payout is dropping going forward.