Northern Trust Corp Offers Dividends Above 3%: A Look at Historical Context

Northern Trust Corp (Symbol: NTRS) has caught the eye of investors as its shares were yielding above 3% in trading on Tuesday, with a quarterly dividend annualized to $3. The stock was priced as low as $99.89 during the day. Understanding dividends is crucial for investors; historically, they have contributed significantly to the overall returns in the stock market.

Historical Dividend Insights

For example, if you had invested in the S&P 500 ETF (SPY) on December 31, 1999, at a price of $146.88 per share, you would have faced a decline by December 31, 2012, when shares were valued at $142.41, representing a drop of $4.67 per share. However, during that period, you would have received $25.98 in dividends, leading to a positive total return of 23.36%. This means even with dividends reinvested, your average annual return would be around 1.6%. In comparison, a sustained yield over 3% from Northern Trust appears to be a compelling opportunity for investors.

Notably, Northern Trust Corp is part of the S&P 500 Index, distinguishing it as one of the larger-cap companies in the market.

Volatility and Dividend Reliability

It’s important to remember that dividend payments are not always consistent and can fluctuate based on a company’s profitability. For Northern Trust, reviewing its dividend history chart can provide indicators on whether the most recent dividend payouts will persist, as this impacts the potential for maintaining a 3% annual yield.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.