Saturday, September 29, 2012

Strong Long-term Dividend Growth Rate

Here's a graph I was surprised by.  It shows the annual growth rate for the real dividends on the S&P 500 index over the past 10-years.  Recent numbers are approaching 4% (ie. real dividends today are 4% per year higher than 10 years ago).

Aside from the big dip during the Great Recession in 2008/2009, the rate had been trending this way since the dot-com-bust.

1 comment:

  1. Here is some raw data: the *real monthly* dividend is at 0.0104 on the S&P 500 right now, vs a high of 0.0118 in Jan09. In Jan99, it was 0.0082 (dot-com peak), then fell to a trough of 0.0073 in Jul03 (same as Oct02 ten years ago). Interestingly, the low in Jan94 was 0.0072, very similar to the value ten years later in 2003.