Capital Markets Winter 2021

III

More Cash in Your Pocket? Lending vs. Owning

• In an unusual occurrence, equity dividend yields are higher than 10-year Treasury yields

I

‒ Over 10-year periods in the past half century, the S&P 500 dividend has grown an average of nearly 6% annually, while a Treasury bond coupon does not grow

II

…But Stock Dividends Can Grow!

Similar Yields…

S&P 500 Div Yield

10-Yr Treasury Yield

S&P 500 Dividend Growth

16%

12%

III

14%

10%

12%

8%

10%

6%

IV

8%

4%

6%

2%

4%

0%

2%

V

0%

-2%

Rolling 10-Yr Annual Growth

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

VI

Source: FactSet, Robert Shiller, Alger. The performance data quoted represents past performance, which is not an indication or a guarantee of future results.

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