What can we help you find?
Back to the blog

Earnings are Down, but Dividends are Up

Stock prices tend to track corporate earnings over the long run. S&P 500 corporate earnings have been flat-to-down over the past 18 months, which explains the sideways trajectory of the stock market (left chart). Without a rebound in earnings, it may be difficult for stocks to make much headway.

Dividends are up considerably, however. Since earnings peaked in October 2014, S&P 500 companies have paid 14.5% more dividends, a 9.6% annualized increase (right chart). Indeed, dividend growth has been a steady, stealth source of return for investors, with S&P 500 dividends rising 6.4% annualized since the turn of the century.



Investment Advisory Team

Questions about this article?

Hefren.com is sponsored by Hefren-Tillotson, Meticulous Wealth Management Since 1948. Hefren-Tillotson is headquartered in Pittsburgh, Pennslvania and has locations in Downtown Pittsburgh, Butler, Greensburg, Wexford and Southpointe in the South Hills. Our financial advisors and investment advisors offer full service, personalized financial planning and retirement planning. Our MASTERPLAN approach can help you plan for the future with a focus on asset management and portfolio management. If you’re looking for time-tested financial advice in the Pittsburgh area, Hefren-Tillotson financial planners are here to help. Securities offered by Hefren-Tillotson, Inc., member of FINRA and SIPC.