The S&P 500 Dividend Yield Is Low, but the Next 10 Years Are Simple Math

The Dividend Mailbox

More on dividend growth investing -> Join our market newsletter!
The last time the S&P 500 dividend yield was sitting at 1.17% was in February of 2001. Many investors remember the stretched valuations 23 years ago, and even more so, how the following year proved to correct that exuberance. While stock prices are currently hovering around all-time highs, us dividend growth investors targeting a yield of 2.5-3% may find challenges in this environment.
Given this, and the uncertainty surrounding the recent presidential election, Greg spends episode 41 reviewing the foundational pillars behind our investment strategy. Even with low yields, the next 10 years of performance can be boiled down to relatively simple math. As GDP expands, corporate earnings grow, which in turn gives investors increasing dividend checks. Through several illustrations of what that looks like in your portfolio, Greg concludes that the dividend growth strategy is alive and well. Later, he reviews some recent actions we have taken, highlighting decisions on selling part of Emerson ($EMR), adding to Hershey ($HSY), and starting a position in Union Pacific ($UNP).
00:00 Introduction to The Dividend Mailbox
00:46 Current Market Overview
001:54 The Drivers Behind The Dividend Growth Strategy
005:10 Historical Performance Analysis
007:52 Future Predictions and Assumptions
010:28 Dividend Growth vs. Buybacks
12:15 Portfolio Growth & Return Illustration
20:16 Market Yields, Challenges, and Opportunities
27:46 Our Recent Portfolio Actions
35:16 Conclusion and Final Thoughts
Send us a text

Book time on our calendar here

If you submit a question to us and we use it in an episode, we will send you an official The Dividend Mailbox Yeti® Tumbler -> Email us at [e-mail].
Notes & Resources:

DCM Investment Reports & Models
Visit our website to learn more about our investment strategy and wealth management services.
Follow us on:
Instagram - Facebook - LinkedIn - Twitter
If you enjoy the show, we'd greatly appreciate it if you subscribe and leave a review