The S&P 500 Dividend Yield Just Reached Its Lowest Level Ever. Here's What History Says Comes Next.

The S&P 500's dividend yield has fallen to a record low of 1.04%, the lowest in history. This mirrors conditions seen in September 2000 before the dot-com bubble burst. However, the article argues current conditions differ significantly: companies are using capital for AI infrastructure investments with strong demand fundamentals, unlike the speculative fiber buildouts of the 1990s. While dividend yields may remain low in the near term, they're expected to recover as AI investments mature and capital returns normalize.