Where Do Returns Come From?

As Q3 earnings season is about to kick off we'll look at what the drivers of returns are for the S&P 500 Index and individual stocks. Annualized returns are a mix of sales growth, margin growth, dividends, share count, and PE multiple growth. See how to think about these levers in relation to price. What are the return attributions of the S&P 500 Index returns? PE multiple growth vs multiple contraction How share buybacks or issuance increase or decrease earnings Dividend yield as a percentage of total return Net Margin expansion or contraction Sales growth has been lower than you might think over the last 10 years EPS or earnings per share 2022 Q3 earnings estimates on EPS and sales Nature of rotation of sectors contributing to total earnings of the S&P 500 Value After Hours podcast and YouTube channel Mentioned in this Episode: Augustus investor letter (click on first one) page 24 breaking down 2011-2021 earnings attributions https://www.semperaugustus.com/clientletter Refinitiv Q3 earnings preview breakdown https://lipperalpha.refinitiv.com/2022/10/sp-500-22q3-earnings-preview-a-turning-point/ Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr Contact Derek [email protected]