About three-fourths of the S&P 500 pay a dividend. According to S&P Dow Jones Indices, dividends have contributed approximately 32% of total S&P return since 1926.
The current yield of the S&P is 1.55%. That’s below the 10-year Treasury yield, but that’s an average.
Remember: High yields don’t come without risk. It’s not unusual to find a stock with a high yield because its price is declining, often a sign of trouble. That could mean the dividend will be cut soon.
This post appeared at Dividend Stocks Research.