There are two components to an investment's total return: price return and dividend return. Add those together, and you get the total return.
Most people who invest in the S&P 500 (SNPINDEX: ^GSPC) treat the dividend as a footnote. Since the current yield on the Vanguard S&P 500 ETF is only 1%, it's understandable.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That hasn't always been the case, though. Over the past century, dividends have provided roughly one-third of the total return for the S&P 500. On a decade-by-decade basis, however, that number has fluctuated wildly.
Here are the annualized price, dividend, and total returns for the S&P 500 for each decade going back nearly 100 years.
#decade #snpindex
Most people who invest in the S&P 500 (SNPINDEX: ^GSPC) treat the dividend as a footnote. Since the current yield on the Vanguard S&P 500 ETF is only 1%, it's understandable.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That hasn't always been the case, though. Over the past century, dividends have provided roughly one-third of the total return for the S&P 500. On a decade-by-decade basis, however, that number has fluctuated wildly.
Here are the annualized price, dividend, and total returns for the S&P 500 for each decade going back nearly 100 years.
#decade #snpindex
21 hours ago
