Dividends Are Keeping Pace With Prices

This is from the Crossing Wall Street blog.  In this post Eddy Elfenbein compares the increase in prices of the S&P to the rise in dividends over the last 25 years.  What the chart below shows is that dividends are keeping up with prices.  This seems to be another argument in favor of the market not being over inflated.  If you need more proof, take a look at the periods before the tech crash in 2000-2001 or the housing crash of 2008.