US Dividends Show Steady Growth

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US Dividends Show Steady Growth

The chart below compares earnings growth and dividend growth for S&P 500 stocks since 1990. Dividend growth has been notably smoother, with growth holding steady at around 11% p.a. since 2011. In comparison, earnings growth has been significantly more volatile. This divergence highlights the stickiness of dividends, which continued to grow even as earnings growth contracted in 2016 and flattened more recently.

 

23.10.19 COTD US Dividends Show Steady Growth chart website
Sources: Bloomberg, Unigestion. Data as at 23.10.19

 


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