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Shareholder yields aren't as low as you think

If one looks at things from the buyback yield's perspective, today's stock yields don't look that poor.

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From the end of 2012 through the end of 2016, total dividends and share buybacks on the S&P 500 are up 42% and 35%, respectively. These numbers haven't kept up with the almost 70% total return on the stock market during this time.

ONE of the reasons many investors are forecasting lower returns in the stock market is simply that dividend yields are much lower than they have been historically.

The expected returns formula for the stock market looks something like this:

Expected Stock Market Returns =

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