Prediction: SpaceX, Anthropic, and OpenAI Will Push the S&P 500 Dividend Yield to an All-Time Low.
Here’s What Income Investors Can Do About It
SpaceX is planning its initial public offering (IPO) for June 12, raising $75 billion at a valuation of $1.77 trillion. Anthropic filed its Form S-1 with the Securities and Exchange Commission on June 1, which could mean it could go public as early as July. OpenAI may go public as soon as September.
Here’s why these three blockbuster IPOs could push the S&P 500 (SNPINDEX: ^GSPC) dividend yield below 1%, and what investors can do about it. Justifying the S&P 500’s low yield S&P Dow Jones indices was considering fast-tracking the inclusion of megacap companies into the S&P 500 well before its typical 12-month seasoning period. But on June 4, the index provider published a press release stating that newly public companies, regardless of size, must wait at least 12 months before being included.