S&P 500 Dividend Yield Hits All-Time Low – Meb Faber Research
The S&P 500 dividend yield hit an all-time low of 1.08%, the lowest since the 1800s.
The previous low was 1.1% in 2000.
Did you know that there are negative-yielding “dividend” mutual funds (expense ratios exceed the dividend yield)?!
On the other hand, since the late 1990s, share buybacks have exceeded dividends. Despite this, almost all stock funds still focus solely on dividends, which is nonsense. (And the same goes for stock issuances, not just buybacks!)
Buffett has been talking about this more than anyone else for decades… shareholder return It covers a topic from 13 years ago, and the second edition is available free online.
As you review last weekend’s Berkshire meeting and gasp at the sight of $400 billion in cash on their balance sheet, understand why they consistently choose stock buybacks over dividends.
Do you see returns of less than 1%?!
mebfaber.com/books/
Chart: Multipl
