Where Did The Dividends Go?

The S&P 500 payout ratio measures the percentage of corporate earnings that companies return to shareholders through dividends. At roughly 28%, the payout ratio is near multi-decade lows, reflecting a growing preference for retaining earnings rather than distributing them. While this allows companies to reinvest more capital into their businesses, investors seeking diversification must increasingly rely on selling shares instead of receiving dividend income, effectively bearing more of the cost themselves.