The S&P 500 Total Return Index

Through August, the S&P 500 is down 3.08% for the year and the total return index, which includes dividends, is down 1.77%. Since August 2000, the Total Return Index is down 1.31%.

Even though dividend yields are low, they do add up over time. Over the last five years, dividends have added 11.22% to your returns. That’s microscopic at even a monthly level, but it does slowly make a difference.

If you pulled a Rip Van Winkle in early 1997 and started ignoring the market, only to wake up today, you probably wouldn’t be too surprised to learn where the market is. How it got there…well, that’s another story.

By the way, the chart below begins in January 1997. Alan Greenspan made his famous Irrational Exuberance speech on December 5, 1996. I only have monthly data, so including all of December 1996, the total return of the S&P 500 is up 109% since then.

Posted by on September 1st, 2011 at 2:08 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.