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#2
05-16-2007, 08:50 AM
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Re: S&P 500 Dividend Yield History
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#3
05-16-2007, 09:25 AM
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Re: S&P 500 Dividend Yield History
The payout ratio is also much lower, so it's not a fair comparison. The earnings yield is in line. This data shows how cheap stocks were in the late 70's, early 80's, but back then you could also buy Treasury bonds with yields in the teens.
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#4
05-16-2007, 10:43 AM
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Re: S&P 500 Dividend Yield History
what exactly is damadoran (sp?) using for the calculation of "earnings yield" and "dividend yield" ?
what is that other think from legg mason (page 4) using to calculate "yield" of the S&P500? it seems that the dividend yield decline is in conjunction with a decline in the overall use of dividends as a % of total payouts to shareholders. the two series are 94% correlated (though that doesn't dictate causality). seems that everywhere you turn there is a different methodology for calculating earnings yield, dividend yield, and just plain old "yield" i'd like to see total return for S&P 500 broken down into it's 3 components (cash, price change, dividends). i'd need to go to bloomberg for that...maybe i'll do it next time i go. Barron
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#5
05-16-2007, 12:36 PM
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Re: S&P 500 Dividend Yield History
wtf
the point is that many companies are doing share repurchases rather than paying dividends now and share repurchases are basically equivalent
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#6
05-16-2007, 12:43 PM
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Re: S&P 500 Dividend Yield History
[ QUOTE ]
wtf the point is that many companies are doing share repurchases rather than paying dividends now and share repurchases are basically equivalent [/ QUOTE ] Share repurchases are more tax efficient for most investors, that's why they're more common now.
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#8
05-16-2007, 12:58 PM
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Re: S&P 500 Dividend Yield History
[ QUOTE ]
[ QUOTE ] wtf the point is that many companies are doing share repurchases rather than paying dividends now and share repurchases are basically equivalent [/ QUOTE ] Share repurchases are more tax efficient for most investors, that's why they're more common now. [/ QUOTE ] But if you own a company where they use a dollar to buy back a share that is worth less than a dollar then you'd probably rather have the dividend.
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#9
05-16-2007, 02:32 PM
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Re: S&P 500 Dividend Yield History
Since they reduced the tax rates on dividends in 2003, expect the payout ratio to continue to rise (as it has been doing recently).
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#10
05-16-2007, 02:37 PM
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Re: S&P 500 Dividend Yield History
[ QUOTE ]
[ QUOTE ] [ QUOTE ] wtf the point is that many companies are doing share repurchases rather than paying dividends now and share repurchases are basically equivalent [/ QUOTE ] Share repurchases are more tax efficient for most investors, that's why they're more common now. [/ QUOTE ] But if you own a company where they use a dollar to buy back a share that is worth less than a dollar then you'd probably rather have the dividend. [/ QUOTE ] Are you saying they're buying back overvalued stock or they're somehow getting ripped off on the specific price they pay for it? If it's overvalued, wouldn't you just sell it? If it's overvalued and you know they're doing the buyback just wait until they do so and the stock price goes up, then sell it. Maybe I'm misunderstanding your point.
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