"Investors love dividend stocks, especially those with ultra-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."
"According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate. It can also include income from limited partnerships, stocks, bonds, and other similar enterprises in which the investor is not actively involved. The more passive income that can help cover rising costs-such as mortgages, insurance, taxes, and other expenses-the easier it is for investors to set aside money for future needs as they prepare for retirement."
Dividend stocks with ultra-high yields can provide substantial passive income while contributing materially to total return, which combines income from dividends and interest with capital gains and distributions. Ultra-high-yield stocks could receive a boost if the Federal Reserve lowers interest rates, improving their attractiveness. Stocks with dividends of 10% or more can supplement wages, Social Security, and pensions. The Internal Revenue Service defines passive income to include earnings from rental activity, limited partnerships, stocks, bonds, and other investments where the investor does not materially participate. Dependable recurring dividends, especially monthly payments, support retirement preparation and cover rising expenses.
Read at 24/7 Wall St.
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