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S&P 500 Stock Prices, Dividends per Share Converging As Expected

Mark5427 Wrote: Jun 02, 2012 8:31 AM
Very clever! The pot is boiling.

In case you're coming back from the Memorial Day holiday weekend in the U.S. with the question "Hey, are stock prices about where they should be right now?", we're happy to answer your question as follows: "Why, yes, stock prices are indeed about where they should be right now!"

As proof, here's the chart that says so, where we observe that the average change in the growth rate of stock prices as measured by the S&P 500 in May 2012 has just about converged with the long-established expected change in the growth rate of the index' underlying dividends per share...