For the month of December and the entire 2008 calendar year, the dividend paying stocks in the S&P 500 Index outperformed the non-payers on an average return basis. In the month of December the payers returned 4.41% versus the non payers return of 3.88%. For the 12-months of 2008, as the below table notes, both payers and non-payers underperformed the market cap weighted total return of the S&P 500 Index.
Given the magnitude of the market's decline, even outperformance to the index seems little consolation in the market environment experienced in 2008.
4 comments :
David,
Please re-check your numbers. How can the average for the non-payers and the payers both be below the average for the total S&P?
Jeff
CCA,
The return for the payers and non-payers is calculated using the "average" return. The Index return overall is the "market cap" weighted return; thus accounting for the difference.
Hope this helps.
David
David,
Can you compare using the same method? Either calculate all 3 based on averages or calculate all 3 using market cap weighted. Otherwise, you're comparing apples and oranges in your chart.
Jeff
Jeff,
I agree this is not comparing apples to apples. I actually pull the information from Standard & Poor's website and they do not calculate the S&P return on an average basis for the data series in this post. I can probably obtain the average S&P return somewhere else. I will look and see what I can find.
Thanks,
David
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