More companies cut their dividends in the second quarter of 2009 than in any other quarter for over 50 years, according to research from index provider Standard & Poor's that comes as equity income funds, which target dividends for returns, struggle to outperform their rivals.

About 7,000 publicly owned companies report dividend information to S&P, and 250 posted dividend decreases over the second quarter, the highest number since the second quarter of 1957.