
"Investors love dividend stocks, especially those with safe high yields, because they provide a substantial income stream and offer significant total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. At 24/7 Wall St., we consistently emphasize the potential of total return to our readers."
"Many investors and traders typically maintain a small list of key stocks they follow when seeking capital gains or high-yield dividends. We decided to screen our 24/7 Wall St. high-yield database to check up on our favorite companies, while looking for those yielding at least 6% with solid dividend coverage. Five well-run companies hit our screens, and all look like timely buys now as interest rates trend lower."
"Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%)."
Dividend stocks with safe, high yields provide substantial income and can materially boost total return through income and stock appreciation. Total return comprises interest, capital gains, dividends, and distributions realized over time. Since 1926 dividends have supplied about 32% of S&P 500 total return while capital appreciation supplied 68%; dividend payers delivered a 9.18% annualized return from 1973–2023 versus 3.95% for non-payers. Over 12,000 U.S. stocks exist, so investors often track a small watchlist. A screen for companies yielding at least 6% with solid dividend coverage identified five well-run firms that appear timely buys as interest rates trend lower.
Read at 24/7 Wall St.
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