"Dividend stocks are a favorite among investors, especially Boomers and older Gen X investors, for good reason. They provide a steady stream of passive income and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time. Let's examine the concept of total return. If you purchase a stock at $20 that pays a 3% dividend ($0.60 per share)"
"and the price rises to $22 in a year, your total return is ($22 + $0.60 − $20) = 13%. This combines price appreciation and dividends received. With the prospect of two more rate cuts in 2026, one in March and another in June, it makes sense for Boomers, Gen X investors, and retirees to load up on five quality high-yield dividend stocks now in anticipation of the upcoming rate cuts."
Dividend stocks offer steady passive income and contribute significantly to total return through dividends and price appreciation. Total return includes interest, capital gains, dividends, and distributions; for example, a $20 stock paying a $0.60 dividend that rises to $22 yields a 13% total return. Expectations of two rate cuts in 2026 create rationale for increased allocations to high-yield dividend stocks. 24/7 Wall St. has focused on dividend stocks for over 15 years. The IRS defines passive income to include rental activity, businesses without material participation, limited partnerships, stocks, and bonds. Five off-the-radar, high-yield companies received Buy ratings from major Wall Street firms.
Read at 24/7 Wall St.
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