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.
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