Chart of the Day: Rolling 10-Year Returns (2024)

FAQs

What is the rolling 10-year average return of the S&P 500? ›

The historical average yearly return of the S&P 500 is 12.864% over the last 10 years, as of the end of July 2024. This assumes dividends are reinvested. Adjusted for inflation, the 10-year average stock market return (including dividends) is 9.783%.

Rolling returns offer a comprehensive view of fund performance across multiple market cycles, analysing returns over individual intervals. By selecting different intervals like three, five, or ten years, investors can gauge the highest and lowest average returns expected from the mutual fund over time.

For the 10 years ending in August 2024, the S&P 500 has outpaced the historical average a bit, returning an annual average of 12.9% with dividends, according to DQYDJ.

NASDAQ-100 Index: YTD: 17.47%; 1YR: 30.77%; 3YR: 11.49%; 5YR: 21.74%; 10YR: 18.89%; Since Inception: 10.15%. Source: Bloomberg L.P. is as of June 30, 2024.

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.

But over the long haul, you can expect your investments to grow at about 10% a year, doubling every seven years or so. Get Forbes Advisor's expert insights on investing in a variety of financial instruments, from stocks and bonds to cryptocurrencies and more.

In 1980, had you invested a mere $1,000 in what went on to become the top-performing stock of S&P 500 (^GSPC -1.73%), then you would be sitting on a cool $1.2 million today. That equates to a total return of 120,936%. The stock? None other than Gap (GPS -6.10%).

Take the ending price and subtract the beginning price, then divide that amount by the beginning price to find that year's return. Next, you'll use averaging to calculate rolling returns. Add up the return percentages you calculated for each year of the time period you're tracking.

What is the difference between rolling return and return? ›

Trailing returns assess performance over fixed periods, like one, three, or five years, while rolling returns, annualized, track performance at various points, updating as periods conclude. If you are looking to invest in a diverse portfolio which minimises the risk of loss, mutual funds are a great investing option.

That means had you invested $10,000 in the stock 10 years ago, your investment would now be worth $2.2 million. That's more than you've made on any S&P 500 stock in that time. The S&P 500 itself is only up 176% in that time, only turning your $10,000 investment to $27,627.

Stock market returns since 1950

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.

The stock market has returned an average of 10% per year over the past 50 years.

Returns in the S&P 500 over the coming decade are more likely to be in the 3%-6% range, as multiples and margins are unlikely to expand, leaving sales growth, buybacks, and dividends as the main drivers of appreciation.

The only exceptions were Q1 2020, Q3 2022, and Q4 2022. Over the past ten years, actual earnings reported by S&P 500 companies have exceeded estimated earnings by 6.8% on average. During this same period, 74% of companies in the S&P 500 have reported actual EPS above the mean EPS estimate on average.

Basic Info. S&P 500 12 Month Total Return is at 27.14%, compared to 22.15% last month and 15.94% last year. This is higher than the long term average of 8.99%.

Overall, the S&P 500 grew at a compound annual growth rate of 13.8% over the last 15 years.