S&P 500 Total Returns by Year Since 1926 (2024)

FAQs

What is the average return of the S&P since 1926? ›

A hundred dollars invested with reinvested dividends into the S&P 500 on January 1, 1926, would have grown to approximately $1.48 million after 98 years, boasting a compounded annual growth rate of 10.3%. (Monthly data provided by Dimensional Fund Advisors.)

The average yearly return of the S&P 500 is 10.628% over the last 100 years, as of the end of July 2024. This assumes dividends are reinvested. Dividends account for about 40% of the total gain over this period. Adjusted for inflation, the 100-year average stock market return (including dividends) is 7.454%.

The S&P 500 has gained about 10.5% annually since its introduction in 1957. The S&P 500's annual average return in 2023 was 26.3%, a significant increase from the -18.1% return in 2022. Returns may fluctuate widely yearly, but holding onto investments over time can help.

Stock market returns since 1928

This is a return on investment of 1,033,896.78%, or 10.06% per year. This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 56,113.34% cumulatively, or 6.79% per year.

If the average dividend yield of your portfolio is 4%, you'd need a substantial investment to generate $3,000 per month. To be precise, you'd need an investment of $900,000. This is calculated as follows: $3,000 X 12 months = $36,000 per year.

Investing in an S&P 500 fund can instantly diversify your portfolio and is generally considered less risky than purchasing individual stocks directly. Because S&P 500 index funds or ETFs track the performance of the S&P 500, when that index does well, your investment will, too. (The opposite is also true, of course.)

By March 2013, the S&P 500 had fully recovered its Great Recession losses and made its first new all-time high since 2007. Opportunistic investors made a killing during the 2008 and 2009 stock market crash.

Over the period July 1926 through December 2021, small-cap stocks had an annualized return of 12.4% versus 11.0% for large-cap stocks. Additionally, small-caps outperformed large-caps 65% over the same time period on an annualized 10-year basis.

Is the S&P 500 compounded annually? ›

The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31^st 2023, had an annual compounded rate of return of 15.2%, including reinvestment of dividends.

Generally, bonds have a lower rate of return compared to stocks, so the average annual return would likely be around 3-5%. The average annual return for investing 100% in stocks varies depending on the type of stocks and market conditions. Historically, the average annual return for stocks has been around 8-10%.

If you invested $100 in the S&P 500 at the beginning of 1950, you would have about $324,894.42 at the end of 2024, assuming you reinvested all dividends. This is a return on investment of 324,794.42%, or 11.48% per year.

Average S&P 500 Return for the Last 20 Years

Looking at the S&P 500 from 2003 to mid-2023 the picture changes. The average stock market return for the last 20 years was 9.75% (7.03% when adjusted for inflation), which is lower than the average 10% return.

Bottom Line. Since 1957, the S&P 500's average annual rate of return has been approximately 10.5% (through March 2023) and around 6.6% after adjusting for inflation.

Question: The average annual return for the S&P 500 from 1886 to 2006 is 5%, with a standard deviation of 15%.

S&P 500 5 Year Return is at 93.01%, compared to 85.29% last month and 55.36% last year. This is higher than the long term average of 45.87%. The S&P 500 5 Year Return is the investment return received for a 5 year period, excluding dividends, when holding the S&P 500 index.