https://www.wsj.com/articles/companies-spend-record-amounts-on-dividends-despite-looming-downturn-11672343632

S&P 500 companies spent a record amount on dividends in 2022, a trend that is expected to continue in 2023 despite a slowing economy as more of the companies that had suspended or cut their dividends early in the pandemic resume payouts. Companies in the S&P 500 allocated an estimated $561 billion toward dividends in 2022, up from $511.2 billion in 2021 and the highest amount on record.

Questions:

• Despite economic headwinds, why are companies expected to continue paying dividends to shareholders in 2023?
• How do U.S. companies generally decide on the level of dividends to pay and how/when do they usually pay them?
• In addition to dividends, what are other ways companies return capital to shareholders? What are the prospects for these alternative capital return strategies in 2023 and why?