UDR Inc (Symbol: UDR), a company listed in the S&P 500 Index, was observed trading on Monday with a dividend yield exceeding 5%. The quarterly dividend is annualized to $1.74, and shares were priced as low as $34.50.
Historically, dividends have contributed significantly to total return; for instance, an investment in the S&P 500 ETF (SPY) from December 31, 1999, to December 31, 2012, would have resulted in a loss in share value but a total return of 23.36% due to dividends.
As dividend amounts are often tied to company profitability, the sustainability of UDR’s recent yield will be pivotal for investors assessing future returns.
