"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. It is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return refers to the collective increase in a stock's value, including dividends."
"Falling oil prices have been a big help, but ask consumers how things are going at the grocery store, and you will likely get an earful. Meat prices have stayed high all through the summer, and while eggs are lower, many mainstay products that families rely on have either remained higher or have been pushed higher, in some cases by the tariffs that have been imposed."
Total return comprises income and stock appreciation, including interest, capital gains, dividends, and distributions realized over time. Dividends have historically contributed roughly 32% of the S&P 500's total return since 1926, underscoring the importance of sustainable dividend income alongside capital appreciation. Inflation remains nearly a percentage point above the Federal Reserve's 2% target, limiting aggressive rate cuts despite lower oil prices. Sustained grocery and meat price inflation and tariffs keep consumer prices elevated. Dividend-paying stocks, particularly those yielding more than 5%, can provide substantial income and total return potential, attracting growth and income investors, with several high-yield picks rated Buy.
Read at 24/7 Wall St.
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