5 Stocks Yielding 5% and More to Buy and Hold for the Next 5 Years

"Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time. For example, 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 the price appreciation and the dividend received."

"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, looking for quality companies that pay at least a 5% dividend, have strong coverage for the dividend, are Buy-rated at top Wall Street firms, and are ideal candidates for a Buy-and-Hold portfolio."

"All five make sense for growth and income investors with some risk tolerance. Why do we cover dividend stocks? Dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner's continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence."

Dividend stocks provide steady passive income and contribute to total return through dividends plus price appreciation. Total return includes interest, capital gains, dividends, and distributions realized over time. An example shows buying a $20 stock paying a 3% dividend ($0.60) that rises to $22 yields a 13% total return by combining price appreciation and the dividend. Buying and holding quality companies for five years or longer and reinvesting dividends can produce significant total return. With over 12,000 publicly traded U.S. stocks, investors often maintain small watchlists. Screening for companies paying at least 5%, with strong coverage and Buy-ratings, identified five buy-and-hold candidates suitable for growth and income investors with some risk tolerance. Passive income generates revenue without continuous active effort and supports diversification or financial independence.

Read at 24/7 Wall St.