Research from Goldman Sachs points to dividend yields as being the key component to stock-based gains for the foreseeable future. Essentially, with US equities at all-time highs, Goldman says dividends will be the "sole contributor to total return during the next 12 months". The investment bank also said the “market implies dividends will account for roughly 50% of total equity return in the next decade”. The main point behind Goldman’s statement is that equities are trading at historically high valuations, so any significant stock appreciation isn’t going to be likely. The median S&P 500 stock is trading in the 99th percentile of historical valuations. As such, Goldman believes the benchmark index will fade once the Fed raises interest rates (expected towards the end of this year). Instead, companies will use their record levels of cash to increase dividend payouts to investors. (VIEW LINK)