OK genius, it is called Principal not Principle. You don't know how to count very well: The SPY paid $2.756 in Dividends in 2011, which corresponds to about 2% return based on today's closing prices. That is 2X better than your 1% CD.
I hope that this not too complicated for you to understand given your limited education. If you need me to explain some more please let me know. I am willing to do it if you ask very nicely.