S&P 500 Index dividend yield is attractive

Sources: Bloomberg and Wells Fargo Investment Institute. Monthly data from January 1, 1971 to September 30, 2021. The S&P 500 Index is a market-capitalization-weighted index considered representative of the U.S. stock market. Investing in stocks involve risk and their returns and risk levels can vary depending on prevailing market and economic conditions. An index is unmanaged and not available for direct investment. Yields represent past performance and fluctuate with market conditions. Current yields may be higher or lower than those quoted above. Past performance is no guarantee of future results. Investing in stocks involves risk and their returns and risk levels can vary depending on prevailing market and economic conditions. Although Treasuries are considered free from credit risk they are subject to other types of risks. These risks include interest rate risk, which may cause the underlying value of the bond to fluctuate.

Key Takeaways

  • The S&P 500 Index’s dividend yield is attractive compared to yields available from traditional fixed income.
  • Quality dividend-producing equities may rise as investors search for income-producing assets in a low-interest-rate environment.