spx Siegel Stocks for the Long Run, Jeremy J.Siegel, Irwin Professional Publishing, 1994.

Stocks for the Long Run, Jeremy J.Siegel, Irwin Professional Publishing, 1994.

Table 4-2

Subsequent Real holding Period Returns Sorted by Dividend Yield in the Initial Year (1871-1992):

Percentile:	Dividend Range:	5 Year Return	30 Year Return
		Stocks:	Stocks:	Bonds:	Bills:
0-10%	2.85%-3.36%	1.04%	4.78%	1.24%	1.33%
10-20%	3.38-3.94%	5.03%	6.50	1.25	0.76
20-40%	3.94-4.53	8.42%	5.96	1.20	1.13
…
80-90	5.96-6.47	10.77	7.45	1.68	0.67
90-100%	6.61-8.71	15.69	7.52	1.69	1.12

Returns are REAL (adjusted for inflation) compound annual returns.

"Even if current dividend yields predict returns five years out, it still does not mean an investor should pull his money from stocks when the dividend yield is low. Table 4-2 indicates that the returns on fixed-income assets are also low when the dividend yields on stocks are low. While it is true that stocks do not outperform bonds or bills by as much in these circumstances, stocks have still outperformed fixed-income assets, no matter what the dividend yield." [p. 77, emphasis added]