5 dividend yields in the united states 1960 2001 600

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Unformatted text preview: United States: 1960 - 2001 6.00% Dividend yield peaked in 1981 at about 5.5% Dividend yield for market 5.00% 4.00% 3.00% 2.00% 1.00% Dividend Yield 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 Year 1980 1976 1972 1974 1970 1966 1968 1960 1962 1964 1978 Dividend yield bottomed out at about 1% in 1999 0.00% Data from Bloomberg. This is the average dividend yield across all U.S. stocks at the end of every year from 1960 to 2001. The dividend yield for U.S. stocks dropped from 3-4% in the 1950s to 1-2% in the late 1990s. Even with the drop in stock prices from 1999 to 2002, the dividend yield remained low at 1.37% at the end of 2001. There is one important aspect of corporate behavior that is missed when you focus on dividends alone. During the 1980s and 1990s, companies increasingly turned to stock buybacks as a way of returning cash to stockholders. In Figure 2.6, the aggregate dividends paid and aggregate stock buybacks for U.S. firms from 1989 to 1998. is reported. 26 Figure 2.6: Stock...
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This note was uploaded on 01/17/2012 for the course ECON 101 taught by Professor Econnorm during the Spring '11 term at Art Institutes Intl. Minnesota.

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