The S&P 500 Price index returned 30.43% in 2019. Using a better calculation including dividend reinvestment, the S&P 500 returned 33.07%.
The 2019 S&P 500 Return: Buy, Hold and Reinvest
The quoted numbers are returns all in one year (2019) – you bought the absolute open on January 2nd, 2019 and sold the closing trade on December 31, 2019. This is equivalent to the "year to date" return after the close on the last trading day of the year.
If you'd prefer a proxy for a one year span, the numbers buying at the December 31, 2018 closing price the returns would be 28.88% and 31.49%, respectively.
S&P 500 Index Price Calculation
Price From | Price | Dec 31 Close | Gain/Loss |
Jan 2 Open | 2476.96 | 3230.78 | 30.43% |
Dec 31 Close | 2506.85 | 3230.78 | 28.88% |
S&P 500 Total Return Price Calculation
Price From | Price | Dec 31 Close | Gain/Loss |
Jan 2 Open | 4924.81 | 6553.57 | 33.07% |
Dec 31 Close | 4984.22 | 6553.57 | 31.49% |
Dividends Matter
As always, the exact timeframe that you choose to compute the total return on an index doesn't matter too much (but stay consistent). However, computing dividends does matter.
Sure – the S&P 500's return was excellent either way. However, you need to account for the dividends you receive. If you reinvested dividends (as the total return number implies), all the better - that's compounding on compounding!
I've been banging the dividend drum for a while, and I won't stop today:
Discount price returns. Do the dividend math – or, hey, keep visiting DQYDJ!
Source on the 2019 S&P 500 Return Calculations
The S&P 500 Price and Total Return index is owned by S&P Dow Jones Indices owns and maintains the S&P 500 Index. Since 1987 they maintain both indices, and you can find the S&P (now) 500 in various stages much further back.
DQYDJ has quite a collection of calculators and tools for you to use total returns for research or other purposes.
- S&P 500 Dividend Reinvestment Calculator
Extends the dividend reinvestment calculations on the S&P 500 back as far as we can cover them. - S&P 500 Periodic Reinvestment and Dividend Calculator
A calculator which estimates fees and taxes. It allows periodic scheduled additions to investments. - S&P 500 Historical Return Calculator
Ever wonder the average, median, or top (maybe even worst) returns over a time period? We've got you covered. - CAPE Calculator
Do the math on the 10-year PE ratio of the S&P 500 index, historically a better valuation method than single year (or worse, quarterly) valuations. It doesn't look promosing now for the next decade, but we'll see...
The 2019 S&P 500 Return
You can find both the S&P 500 and the Total Return at Yahoo!. Here's the overlay for 2019:
Just reinvesting dividends would have boosted your returns over 2.5 percentage points. If you only looked at price returns you'd inappropriately be looking at lower returns – which don't tell the whole story.
Either way – it was a great year! And much better than last year's losses (with and without the dividend calculation) Just keep those comparisons appropriate.
Here's to more massive gains in 2020 📈.
Other years:
- 2023 S&P 500 Return
- 2022 S&P 500 Return
- 2021 S&P 500 Return
- 2020 S&P 500 Return
- 2018 S&P 500 Return
- 2017 S&P 500 Return
- 2016 S&P 500 Return
- 2015 S&P 500 Return
- 2014 S&P 500 Return
- 2013 S&P 500 Return
- 2012 S&P 500 Return
What do you see the S&P 500 doing in 2020?