The S&P 500 Dividend Yield Just Reached Its Lowest Level Ever. Here's What History Says Comes Next.
The last time dividend yields were extremely low, it preceded a defining era for the stock market.
Overview
Dividends used to contribute significantly to investors' annual returns. For much of the 20th century, dividend yields on the S&P 500 (SNPINDEX: ^GSPC) floated between 3% and 5%, save for a few macroeconomic shocks (which sent yields higher). Today, a stock paying a 3% dividend could be considered a high-yield dividend stock. In fact, the S&P 500's aggregate dividend yield over the last 12 months has fallen to 1.04%, the lowest value on record.
The last time dividend yields were this low, it didn't bode well for investors. The S&P 500 dividend yield reached a low of 1.11% in September 2000, just six months before the dot-com bubble burst. Here's what's pushing today's dividend yield lower, how low yields played out over the long run, and what it means for investors today.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.