The Value of Dividends

Dividend income and its reinvestment has comprised a significant portion of long-term stock gain. Dividends today compare very favorably to income that can be generated from competing investments as the S&P 500 yields 1.8%, a smidge less than the yield on the 10-year U.S. Treasury (as of 12.31.19), while the yield for Value stocks (represented by the Russell 3000 Value index) is some 70 basis points higher at 2.5%.