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CAC 40 yield: key figures to invest better
The yield of the CAC 40 interests anyone who plans to place his money on the stock market. Knowing the performance of this index over different periods makes it possible to better understand its potential gains and to measure the associated risks. The idea is simple: the CAC 40 brings together 40 flagship values listed on Euronext Paris , each impacting more or less the global score according to its capitalization and its floating capital. Its average evolution turned, according to several internal sources and calculations, around 6 to 7 % per year since 1990; This rate includes sometimes brutal fluctuations, especially during crises of 2001, 2008 and 2020. In this article, you will find specific data on yield, the most representative periods and a comparison with cryptocurrencies, in particular bitcoin.
Table of contents
Understand the concept of yield of the CAC 40
The concept of return for a stock market index covers several aspects. First, the CAC 40 is based on a weighted calculation: each action making up the index has a weight proportional to its market capitalization and the share of freely exchangeable securities (the "float" or floating capital). The level of the index therefore follows the valuation of companies which constitute it, in real time, on the Parisian market.
However, when we talk about CAC 40 yield, we can mention two distinct indicators:
- The so -called "naked" yield, which only takes into account the performance of the index (it is sometimes called the CAC 40 Price Return index).
- The "global" yield, which includes reinvested dividends (often named CAC 40 gr for large return or sometimes TR for total return).
Why distinguish these two figures? Dividends have a considerable impact on long -term performance. According to certain estimates, between 1990 and 2025, around half of the capital increase invested in the Paris index comes from the reinjection of these dividends in the shares of CAC 40.
What difference with other stock market indices?
Several large financial centers use the same principle of calculation: the S&P 500 in the United States, the Dax in Germany or the FTSE 100 in the United Kingdom. Each follows a basket of large local values. The CAC 40 has the advantage of concentrating some of the largest capitalizations in Europe, particularly in the luxury and energy sector, which makes it crucial to understand the dynamics of the Paris Stock Exchange.
History of CAC 40 yield in the long term
To measure the performance of the index over several decades, many analysts are based on the data collected since its creation in 1988.
What does this history reveal?
Since 1990, CAC 40 yield has been around 6 % to 7 % per year on average if the price variations and the impact of reinvested dividends are incorporated . This range varies according to the period chosen and the methodology for integrating dividends.
The years 2001 and 2002 saw the index retreating 25 % and 35 % respectively, linked to the bursting of the Internet bubble and geopolitical uncertainties.
The year 2008 represents one of the worst falls with almost 39 % annual decline, in the context of the global financial crisis.
Conversely, 1999 or 2021 offered very positive results, above 30 % over the year (taking into account only the naked index).
This type of volatility shows that investment in CAC 40 is not a long, quiet river. However, when you consider a placement horizon of 10 or 15 years, the average performance becomes favorable again, finding this famous zone of 6 % -7 % annual.
Precise studies and sources to confirm these figures
According to Euronext (official website of the Paris Stock Exchange) , the CAC 40 has experienced fluctuating long -term growth, but generally positive, thanks to its sectoral composition;
The impact of volatility on your investment
The volatility of the CAC 40, measured in annual standard deviation, can reach 20 % some years, or even more during major crises. Concretely:
Short -term investors ( trading over a few weeks) are exposed to fast gains, but also to substantial losses.
On a longer horizon (5, 10, 15 years or more), volatility smooths. This is why many fund managers suggest keeping positions over an extensive period to optimize the profitability of the placement.
Comparison of yields of CAC 40 and Bitcoin
The table below illustrates the evolution of CAC 40 and Bitcoin over the past few years.
We note that the CAC 40 offers a more stable performance with moderate fluctuations, while Bitcoin displays extreme volatility,
alternating between spectacular increases and severe drops. This difference highlights the distinct risk profiles of these two assets. However, in the long term, the rise of decentralized finance means that Bitcoin is much more profitable.
| Year | CAC 40 yield (%) | Bitcoin yield (%) |
|---|---|---|
| 2023 | 16.5% | 162% |
| 2022 | -9.5% | -65% |
| 2021 | 28.9% | 66% |
| 2020 | -7.1% | 302% |
| 2019 | 26.4% | 95% |
| 2018 | -11.0% | -74% |
| 2017 | 9.3% | 1358% |
| 2016 | 4.9% | 123% |
| 2015 | 8.5% | 34% |
| 2014 | -0.5% | -58% |
| Total (2014-2023) | 59.34% | 7895.92% |
CAC 40 yield on different periods
When we speak of CAC 40 yield, it is useful to distinguish different periods, because a simple average figure does not illustrate all the diversity of performance. Here are some marks based on the observed average and typical stock market cycles:
Over one year
The annual yield of CAC 40 varies considerably from year to year. For example :
Over the last twelve months (example: March 2024 to March 2025), we can observe an increase close to 7 % if we trust certain post-crisis economic recovery cycles.
During stock market correction period, the index can lose 10 % or more in a single year, as in 2018 (around -11 % in "naked" version).
In the short term, the index undergoes many influences (geopolitical tensions, guiding rate, macroeconomic data), it is therefore normal to see significant oscillations.
Over 5 years
The decline over five years already smooths volatility a little. Generally, the CAC 40 remains within a range of 20 % to 40 % gain over 5 years (with dividends) if the period does not include a major crisis. Conversely, a fort in the middle of the cycle can degrade the yields.
Concrete example: If we had invested at the end of 2016 and sold at the end of 2021, the average annual assessment would be around 6.5 % to 7 %, in particular thanks to the post-2020 economic recovery and the good performance of luxury or health values.
Over 10 years and more
In the long term, many analysts to estimate that the performance of the index often aligns with the overall economic growth of the euro , by adding the capital gain linked to the payment of dividends. Thus, over a full decade, we can reach an average yield greater than 6 % per year (dividends included).
This growth prospect is verified especially if the investor maintains his position and systematically reinvests dividends. The cumulative effect of distributions makes it possible to significantly increase capital over the years.
Focus on the sectoral distribution of the CAC 40
The overall yield of this index depends a lot on the sectoral distribution of its values:
Luxury sector
Groups like LVMH, Hermès, Kering and even L'Oréal often represent more than 30 % of total capitalization. This area has recorded impressive performance over the last decade, driven by a sustained international demand. However, their contribution in terms of dividend, although regular, remains relatively lower than in other sectors.
Banking and financial sector
Banks such as BNP Paribas, Société Générale or Crédit Agricole has historically displayed dividends . In the year 2024, for example, BNP Paribas and Crédit Agricole offered yields of more than 6 % for their shareholders. Nevertheless, the volatility of this sector can be important in times of financial tensions.
Energy and telecoms sector
- Totalnergies often weighs heavy in the performance of the CAC 40 . Its dividends are generally attractive, with a distribution rate that increases the overall index yield. - Orange, the main telecom player in the index, often delivers a high dividend, sometimes greater than 6 %, even if the share price does not always display dazzling growth.
Other major players
- Air Liquide, Schneider Electric, Danone, Engie or Axa also contribute to stock market dynamics. With the rise of the industrial sector and the energy transition, some of these companies record a high market capitalization and a stable return
Comparison of the yield of CAC 40 and Bitcoin
The rapprochement between the performance of the CAC 40 and those of Bitcoin may seem surprising, as these two asset classes seem distant. However, active investors regularly compare the profitability of the Paris Stock Exchange to that of the most famous crypto-active, in order to seize the opportunities for diversification.
Bitcoin experienced an bull run between 2020 and 2024, recently exceeding $ 100,000.
Over the same period, the CAC 40 increased by several dozen percents, while Bitcoin rose hundreds of percent.
On the other hand, the volatility of Bitcoin remains significantly higher. Over a few months, cryptocurrency can lose more than 50 % of its value, while the correction of a stock market index such as the CAC 40 rarely exceeds 20 % or 30 % over the same duration.
The rise of bitcoin and decentralized finance
Bitcoin was born in 2009 and, very quickly, won as a major asset. Its story is based on an offer limited to 21 million units and decentralized operation via the blockchain. Many market players have seen a potential refuge in the face of accommodating monetary policies, while others are interested in its high performance potential.
At the same time, decentralized finance ( DeFi ) emerged on other blockchains, including Ethereum . The DeFi offers an alternative to conventional financial systems by offering:
- Automated loan and loan protocols.
- Decentralized trading services allowing to exchange different cryptocurrencies.
- Possibilities of Stuking or Yield Farming to generate passive income.
What lessons for investors?
The CAC 40 offers a moderate but relatively stable average increase, supported by more tangible economic fundamentals and by the growth of large listed companies.
Bitcoin can generate dazzling increases, but also strong falls, in very short time intervals.
Diversifying your portfolio by including a limited percentage of crypto-active can be a strategy, provided you tolerate high volatility and risk.
How to invest in taking advantage of the CAC 40 return?
You have several options to expose yourself to the Parisian index. The most common:
Live actions
Individually acquire certain values of the CAC 40 in order to compose your portfolio. Benefits :
- Freely choose the companies to focus on (for example, the luxury or energy sector).
- Recover the dividends yourself and decide their reinvestment or not.
Disadvantages:
- Time to analyze each listed company .
- Potentially high brokerage costs if you often place orders.
ETFs replying the index
Exchange Traded Funds (ETF) have become a privileged means of monitoring the performance of a stock market index. An ETF CAC 40, managed by Lyxor or Amundi for example, seeks to reproduce the basket of index shares. You buy a single share of ETF, and you are exposed to all 40 values.
Management costs are generally less than 0.3 % per year for a basic ETF on the CAC 40.
Some ETF automatically reinvests dividends (accumulative), others distribute them to the investor.
Derived products (future, options, turbos)
More technical, they are aimed at informed investors. These products make it possible to bet on the increase or the drop in CAC 40 in the short term, and often with a lever effect. This can amplify gains, but also losses.
Practical advice to optimize profitability
Aiming a long placement horizon if your objective is the construction of heritage. The CAC 40 shows its full potential over 5, 10 years or more.
Reinvest dividends to increase yield via the capitalization effect.
Diversify, not only inside the index (several sectors), but also on other asset classes (bonds, real estate, gold, etc.) if you are looking to reduce the overall volatility of your portfolio.
The stock market cycle and its repercussions on the CAC 40
Like any index, the CAC 40 follows market phases:
- Expansion phase: the economy is doing well, companies display increasing profits, the index climbs regularly.
- Market peak: The courses reach heights, the value of actions sometimes becomes overvalued. The risk of correction increases.
- Recession or contraction: after a shock (financial crisis, health crisis, etc.), confidence is crumbling, the index is retreating.
- Resumption: Confidence comes back, market players buy again and prepare the next increase phase.
Concrete examples of recent cycles
From 2009 to 2020, the post-crisis expansion phase of subprimes was one of the longest, with multiple annual records on stock market indices.
In 2020, the health crisis caused a brutal decline, followed by a marked recovery in 2021.
The geopolitical tensions of 2022 led greater volatility, impacting the progression of the index, but from 2023, new notable increases were observed.
Monitor macroeconomic indicators
- Interest rate: If central banks increase rates, the cost of credit for companies can climb, weighing on their margins.
- Inflation: moderate inflation is often well tolerated by the stock market. Very high inflation disrupts investment plans and pesters profitability.
- GDP growth: A Progress GDP feeds demand for goods and services, which benefits CAC 40 companies.
- International context: political crises, conflicts or commercial wars can slow down market dynamics.
Profitability and growth prospects
For the average investor, targeting the CAC 40 index is an effective means of capturing the growth of the largest French companies. Its "advantage" lies in automatic sectoral diversification (even if some large groups sometimes dominate more than 45 % of total weighting).
The advantages of a long -term placement
- Cumulative effect of dividends: by reinvesting each perceived dividend, you benefit from a snowball effect. In the long term, this accumulation of distributions plays a crucial role in global yield.
- Capital gain on capital: The rise in prices over several years can generate substantial gains, especially if you have acquired your positions during a lower market phase.
- Protection against inflation: generally, actions adjust up if inflation is not too violent. In this context, holding a basket of CAC 40 shares can protect against the loss of purchasing power linked to inflation.
The limits of the strategy
- The CAC 40 remains focused on a single country: France. Even if the companies in the index are often international, shocks specific to the euro zone or national policy can affect it.
- The absence of rapid performance: the CAC 40 is not intended for an ultra-short term trading. Better to see a medium long term placement.
- The dependence on certain dominant groups (particularly luxury or energy) can accentuate volatility.
- A trend reversal in these sectors could weigh heavily.
Bitcoin: Faced with traditional finance
What about decentralized finance?
Beyond Bitcoin, decentralized finance offers protocols where each user can lend, borrow or exchange tokens independently, without going through a traditional bank. This innovation is attracting more and more investors, intrigued by the possibilities of returning offered ( Staking , Liquidity Pools, etc.).
Nevertheless, the DeFi often works on blockchains like Ethereum, more exposed to hacks or code flaws. Some therefore see it as a very specialized complement, but not a direct competition at the CAC 40, which remains the prerogative of solid and regulated businesses.
Conclusion: a stable CAC 40 yield and additional bitcoin
The yield of the CAC 40 in the long term remains historically around 6 % to 7 % per year, taking into account the dividends. The French index remains a solid vector to access the growth of large hexagonal and international groups, despite the vagaries of the stock market cycle.
For its part, Bitcoin symbolizes the dynamism of decentralized finance, with a sometimes spectacular increase in potential, accompanied by extreme volatility. The two approaches are not mutually exclusive: they can complement themselves for those who wish to diversify their investments, manage volatility and exploit various sources of performance.
In summary
- The CAC 40 is suitable for investors looking for a long -term performance dividends of 40 large listed companies .
- Volatility remains present, with significant variations from one year to the next (Krach in 2008, crisis of 2020, etc.).
- Bitcoin displays potentially high yields, but a very marked risk of correction . However, it attracts an audience in search of diversification and return outside the traditional stock market.
Investments in cryptocurrencies are risky. Crypternon could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a property or service put forward in this article. Readers must do their own research before undertaking any action and investing only within the limits of their financial capacities. Past performance does not guarantee future results. This article does not constitute an investment .
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AMF recommendations. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital .
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Yohan Uzzan
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
