Observations: Stock Market Total Returns through 2010

Monday, January 2, 2012

Stock Market Total Returns through 2010

Last year, I archived the "Stock Market Returns through 19xx" post so that the results through year-end 2009 would continue to be available. Based upon the interest in that post, it seems worthwhile to continue the practice. So, for interested readers, following is my archive of market total returns through 2010.

Stock Market Total Return Results Through 2010

Since 1900 (end-of-year 1899), through 2010, I estimate the average total return/year of the DJIA (Dow Jones Industrial Average) was approximately 9.4% -- 4.8% in price appreciation, plus approx 4.7% in dividends. (Some numbers won't add up due to rounding.)
Since 1929 (year-end 1928 -- i.e., before the crash), thru 2010, the return was 8.8% (4.6%, plus 4.3%) [note: see The 1929 Stock Market Crash]
Since end-of-year 1932 (i.e., after the crash): 11.2% (7.0%, plus 4.2%)
The average annual stock market return for the past twenty-five calendar years, was 11.2% (8.4%, plus 2.8%)
Stock market returns for the last 20 years: 10.2% (7.7%, plus 2.5%)
Returns for the last 10 years, 3.1% (0.7%, plus 2.4%)
For the last 5 years, 4.2% (1.6%, plus 2.7%)
For 2010 the stock market (Dow/DJIA) total return was 13.8% (11.0% plus 2.8%)
2010 year-end dividend yield was 2.5%

For related results, see:

Stock Market Total Returns through 2011 similar to this post
Stock Market Total Returns through 2009 similar to this post
2010 Year-End Stock Market Update December, 4th Qtr, YTD, etc.

Notes re Data

In all cases above, the returns are from year-end to year-end. In addition, by "stock market" I mean the DJIA (Dow Jones Industrial Average). The results would be essentially the same for the S&P 500. Notes: returns are compounded annually; compounding dividends more frequently would result in slightly higher returns; dividends prior to 1929 have been estimated based upon another stock market index. To calculate the return for periods not listed above, e.g. 1999-2002, see my Dow Compound Growth Rate Calculator/Spreadsheet.

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Copyright © 2012. Last modified: 1/3/2013