(Reuters) - S&P 500 dividends are likely to fall about 1% this year, much less than previously expected, as companies reinstate previously suspended payments as they become more confident about recovering from the coronavirus, according to S&P Dow Jones Indices. (GRAPHIC: S&P 500 dividends on track for minor 2020 decline - ) S&P 500 .SPX companies slashed or suspended over $40 billion in dividends in the second quarter, the deepest quarterly drop since 2009. But cuts tapered off mid-year as the U.S. economy began to rebound and some companies reinstated their dividends, while Microsoft MSFT.O in September hiked its dividend by 10%. As a result, dividends paid by S&P 500 companies are likely to end 2020 at $479.5 billion, compared to $485.5 billion last year, according to S&P Dow Jones Indices. Although smaller than expected, the annual decline would still be the first since 2009 during the financial crisis. S&P Dow Jones Indices’ newest projection is a major improvement from earlier in 2020, when analysts expected the pandemic to result in as much as a 10% annual decline in dividends. “Last year was a record year. This year your paycheck is going to be down 1%,” said S&P Dow Jones Indices analyst Howard Silverblatt. “You can cry, but I’m not feeling sad for 1%.”