While this may seem low, investors have to remember that it is relatively high compared to Treasuries. For instance, some may remember 4% dividends in the 1990s, but Treasuries were at 7% and corporate bonds gave out 10%.
“Today, equities compare much more favorably with their fixed income competitors, and even more favorably with cash,” Koesterich said.
For more information on dividends, visit our dividend ETFs category.
Max Chen contributed to this article.