That matters because, while many people buy stocks in hopes of scoring profits down the road, dividends deliver cash right now. And if the vast majority of the cash comes from a tiny minority of companies, small changes can have big effects.
A large chunk of historical returns from stocks comes from dividend payouts. It is the reason why the large cap stocks total return index exceeds the large cap stock appreciation index by more than 2:1.
U.S. Large Cap Total Return Index (LCSTRI); S&P 500 Total Return Index
U.S. Large Cap Capital Appreciation Index (LCSCAI); S&P 500:
The stock market with a 2% dividend yield is not historically cheap. Expect the market to cheapen as we churn within the depressionary box. When we reach the upper bands, it will generate a long-term buy signal(s) that will mark the next secular, economic boom.
Dividend Yield vs S&P 500:
Source: finance.yahoo.com
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