The reason appears to have come from secondary effects: payout ratios were too high during the Great Depression and real dividends fell even though
nominal dividends grew during the late 1960s and early 1970s.
Not exact matches
Which means the
nominal dividend payment has
grown.
«If net income continued
growing at this more modest pace, in lockstep with
nominal GDP, corporations would not be able to continue
growing dividends at current rates while keeping payout ratios constant.»
In trying to characterize
dividend approaches, I found that the
nominal dividend of the S&P 500 index has
grown consistently at 5.5 %.
Judging from the S&P 500 index during stagflation, you can always expect the (
nominal)
dividend amount to
grow, but not necessarily as fast as inflation.
Practicing for Retirement In this analysis, I assumed that the DVY
dividend grows only as fast as that of the S&P 500, which is 5.5 % per year (
nominal; without adjusting for inflation).
The S&P 500 (
nominal)
dividend has
grown at a remarkably stable 5 % per year since the 1940s.
Nominal dividend income continued to
grow, just not as fast as inflation.
Assuming that it only matches the
dividend growth of the S&P 500, it will
grow at 5.5 % per year (
nominal).
S&P 500
dividends have
grown almost exactly 5.5 % per year (
nominal, annualized) since 1940.
You should be able to construct a highly diversified portfolio with an initial
dividend yield above 4 % that
grows its
dividend amount at least as fast as 5.5 % per year (
nominal).
Judging from the S&P 500 index during stagflation, you can always expect the (
nominal)
dividend amount to
grow.
To an excellent approximation,
nominal dividends of the S&P 500 index
grow from 4.8 % to 5.0 % annually.
Nominal dividends continued to
grow.
In turn, this implies that corporate earnings, from which
dividends are paid out, will likely
grow more slowly than
nominal GDP.