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In 2019, 84% of the S&P 500, 69% of the S&P MidCap 400 and 53% of the S&P SmallCap 600 paid dividends. I would not characterize dividends as "relatively rare",
by joelwilliamson 5y ago
In 2019, 84% of the S&P 500, 69% of the S&P MidCap 400 and 53% of the S&P SmallCap 600 paid dividends. I would not characterize dividends as "relatively rare", and I'm curious why you think they are.
https://www.streetinsider.com/Dividends/S%26P+500+Companies+Paid+Nearly+Half+a+Trillion+Dollars+in+Dividends+in+2019%2C+a+New+Record/16308696.html https://www.streetinsider.com/Dividends/S%26P+500+Companies+...
- wilkommen 5y agoMy point isn't really how many stocks offer dividends, but more that the price of the stock isn't really connected to the size dividend at all. Companies can and do change the amount of the dividend without your approval, and many stocks don't offer dividends at all, and no one sees a stock not offering a dividend as a demerit on its desirability or value. Except for people who buy the companies on Dividend Kings list, no one is evaluating the value of stocks purely on the expected future dividend returns. For the most part, the dividend is sort of a "bonus" and the real return you hope to get from the stock is in the form of appreciation.