FYI: It’s very easy to get caught up in today’s market and fall prey to recency bias.
Case in point: it feels as if the S&P 500’s yield has hovered around 2% forever.
But viewed over a much longer period, dividend yields today are quite low, as the accompanying chart shows. In fact, yields have compressed significantly over time for a variety of reasons.
A key factor is lower bond yields.
“Declining interest rates have had a significant and wide-ranging impact on investor and corporate behavior,” says Daniel Peris, a portfolio manager at Federated Investors who focuses on dividend investing.
Regards,
Ted
https://www.barrons.com/articles/stock-dividends-arent-what-they-used-to-be-heres-why-51556186400?refsec=income-investing
