From The Motley Fool · Daniel Sparks · · 1m 10s
S&P 500's Average Year Rarely Hits 10%
S&P 500's average yearly return rarely hits 10% despite long-term data showing 10.6% growth.
In brief
S&P 500's average yearly return rarely hits 10% despite long-term data showing 10.6% growth. The S&P 500's average yearly return rarely lands near 10% due to extreme yearly fluctuations. Originally reported by The Motley Fool.
S&P 500's Long-Term Average
The S&P 500 gained around 10.6% annually with dividends reinvested over 69 calendar years from 1957 through 2025.
Rare 8%-12% Years
Only four years between 1968 and 2025 ended with returns between 8% and 12%: 1968, 1993, 2004, and 2016.
Extreme Yearly Fluctuations
The best year was 1958 with 44% returns, while the worst was 2008 with a 37% drop during the financial crisis.
Median Year Returns
The median year returned around 15% with dividends reinvested, far above the 10.6% long-run average.
Longer Time Frames
Over 20-year periods, the S&P 500's yearly return landed between 8% and 12% in 27 of 50 cases, or just over half.
2026 Performance Outlook
As of 2026, the S&P 500 is up around 14% with dividends reinvested, above the 8%-12% range with about 10 weeks left.
The one thing
The S&P 500's average yearly return rarely lands near 10% due to extreme yearly fluctuations.
