Prediction: SpaceX, Anthropic, and OpenAI Will Push the S&P 500 Dividend Yield to an All-Time Low. Here's What Income Investors Can Do About It.
Written by Daniel Foelber for The Motley Fool -> Many of todayโs leading companies have no or low dividends, driving down the yield of the S&P 500. SpaceX, Anthropic, and OpenAI will likely be added to the S&P 500 in 2027, dragging the indexโs yield lower. Growth companies ten
Many of todayโs leading companies have no or low dividends, driving down the yield of the S&P 500.
SpaceX, Anthropic, and OpenAI will likely be added to the S&P 500 in 2027, dragging the indexโs yield lower.
Growth companies tend reinvest in their underlying businesses rather than return capital to shareholders.
SpaceX is planning its initial public offering (IPO) for June 12, raising $75 billion at a valuation of $1.77 trillion . Anthropic filed its Form S-1 with the Securities and Exchange Commission on June 1, which could mean it could go public as early as July. OpenAI may go public as soon as September .
Here's why these three blockbuster IPOs could push the S&P 500 (SNPINDEX: ^GSPC) dividend yield below 1%, and what investors can do about it.
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S&P Dow Jones indices was considering fast-tracking the inclusion of megacap companies into the S&P 500 well before its typical 12-month seasoning period. But on June 4, the index provider published a press release stating that newly public companies, regardless of size, must wait at least 12 months before being included. That means we won't see SpaceX, Anthropic, and OpenAI in the S&P 500 until 2027.
However, once they are added, they could push the S&P 500 dividend yield even lower. The S&P 500 dividend yield currently sits at 1.1% -- which is the lowest since the 1800s . The yield has fallen because the S&P 500 no longer looks like it used to in the past.

