Total U.S. Corporate Profits, Cash Flow and Dividends Since 1947 vs. Wilshire 5000 Stocks

This chart includes all U.S. private and public corporate profits, cash flow and dividends.  Wilshire 5000 stocks represent only public companies.

The base year for this indexed data is 1947.

Profits has recovered from 2008 crash, and now exceed 2007 pre-crash levels.

Dividends have recovered substantially, but are still somewhat below 2007 levels, relating in great part to dividend suspensions by banks which were key components of pre-crash dividend flow.

Cash flow has been fairly steady through the crash period and is at record levels.

Stocks have been massively up and down while profits, cash flow and dividends have been much less volatile, representing valuation multiple expansion and contraction.

Business fundamentals have been far more stable than the prices investors have been willing to pay to own stocks.

See our Rational Risk Dividend Income Investor for more discussion of dividends.

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