Don't Sleep On Dividends

Financial Research, Money Management • Feb 28, 2025 at 1:02 PM EST

Owning the “market” through a “buy and hold” strategy of an ETF like SPY means you’ll capture the dividend yield of the market as well.

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Owning the “market” through a “buy and hold” strategy of an ETF like SPY (that tracks the S&P 500) means you’ll capture the dividend yield of the market as well. Over time, those dividends really add up.

Since 1993 when the first S&P 500 ETF (SPY) began trading, nearly half of the index’s 2,390% total return has come from capturing and reinvesting quarterly dividend payouts.

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