Recent declines in bond yields along with equity market uncertainty have caused investors to seek out dividend paying stocks. With that in mind, below we highlight the dividend yield of the S&P 500 since 1993.
The current yield of the index is 1.88%, while the highest yield of the current bull market was reached on 10/12/05 (2.1%). As shown, yields were much higher back in the early 90s and, as expected, yields declined significantly during the tech dominated rally of the late 90s. One positive note is that while market levels are the same now as they were in early 2000, its dividend yield is much higher.