To a lesser extent, dividends have increasingly made up more of the index level, increasing from 1.97% in 2009 to 2.19% last year.
Companies have become focused on the return-on-capital model, such as revenues-per-share and earnings-per-share, which may reflect the way CEO compensation has changed over the past two decades.
Previously, executives primarily received option grants, which incentivize them to focus on the short-term stock price.
However, as you can see below, while the percentage of CEOs receiving options has been declining slightly, the percentage of CEOs receiving restricted stock grants has jumped considerably. This means that the executives’ interests are more in line with shareholders’ and are incentivized to think about total return and dividend payments.
In today’s investment environment with low yields, savvy investors will continue to look for safe havens and better yielding alternatives, with the fortunate recipients being gold and dividend-paying stocks.