The S&P 500 Dividend Yield Is Low, but the Next 10 Years Are Simple Math

More on dividend growth investing  -> Join our market newsletter!  The last time the S&P 500 dividend yield was sitting at 1.17% was in February of 2001. Many investors remember the stretched valuations 23 years ago, and even more so, how the following year proved to correct that exuberance. While stock prices are currently hovering around all-time highs, us dividend growth investors targeting a yield of 2.5-3% may find challenges in this environment.Given this, and the uncertainty surrounding the recent presidential election, Greg spends episode 41 reviewing the foundational pillars behind our investment strategy. Even with low yields, the next 10 years of performance can be boiled down to relatively simple math. As GDP expands, corporate earnings grow, which in turn gives investors increasing dividend checks. Through several illustrations of what that looks like in your portfolio, Greg concludes that the dividend growth strategy is alive and well. Later, he reviews some recent actions we have taken, highlighting decisions on selling part of Emerson ($EMR), adding to Hershey ($HSY), and starting a position in Union Pacific ($UNP).00:00 Introduction to The Dividend Mailbox00:46 Current Market Overview001:54 The Drivers Behind The Dividend Growth Strategy005:10 Historical Performance Analysis007:52 Future Predictions and Assumptions010:28 Dividend Growth vs. Buybacks12:15 Portfolio Growth & Return Illustration20:16 Market Yields, Challenges, and Opportunities27:46 Our Recent Portfolio Actions35:16 Conclusion and Final ThoughtsSend us Fan Mail________ Disclaimer: Past performance does not guarantee future results. This episode is for educational purposes only and is not investment advice.________ RESOURCES:Schedule a meeting with us: Financial Planning & Portfolio Management Getting into the weeds: DCM Investment Reports & ModelsIf you enjoy the show, we'd greatly appreciate it if you subscribe and leave a reviewFollow us on:Instagram | Facebook | LinkedIn | X