Goldman: Dividends Could Be Sole Contributor Of Return For The S&P 500 Over Next 12 Months

With the S&P 500 trading at all-time highs, Goldman Sachs expects the dividend yield associated with stock investing to be the “sole contributor to total return during the next 12 months”, and “market implies dividends will account for roughly 50% of total equity return in next decade”. In other words, don’t expect much contribution from stock price appreciation based on forward looking growth projections, particularly as the price earnings multiple is touching “historic valuation” levels with “limited scope for further upward expansion.” With S&P 500 at historically stretched valuations, Goldman questions stock runway length In its May 15 US Weekly…