S&P 500 yearly returns vary significantly, but historically average around 10-11% annually (including dividends) over long periods, with recent decades seeing higher averages (e.g., ~14-16% over the last 5-10 years as of late 2025) but also wild swings, like a ~28.7% gain in 2021 and a ~18.1% loss in 2022. Returns include price changes and reinvested dividends, with recent total returns showing strong recent years but also significant downturns, emphasizing market volatility.
Recent & Historical Averages (Approximate, Dividends Reinvested)
- Last 10 Years: ~14.8% to 16.5%.
- Long-Term (150+ Years): ~9.5%.
- Long-Term (50 Years): ~11.96%.
- Last Year (to late 2025): Around 12.1% to 16.5%.
- Last 5 Years: ~13.8% to 16.1%.
Examples of Yearly Total Returns (Including Dividends)
- 2021: +28.71%
- 2020: +18.40%
- 2019: +31.49%
- 2018: -4.38%
- 2022: -18.11%
Key Takeaways
- Volatility is Normal: Returns fluctuate wildly year to year; averages smooth out these peaks and troughs.
- Total Return Matters: Always consider dividends, as they significantly boost overall performance.
- Past Performance ≠ Future Results: While historical averages are useful, they don't guarantee future returns.
