Our December High-Yield 6% Dividend Stocks Have Big 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. 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 by 10% to $22 in a year, your total return is ($22 + $0.60 − $20) = 13%. This combines price appreciation and dividends received."

"There are almost 10,000 publicly traded stocks in the United States; not even the most intelligent investors with the best tools can find them all immediately. 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 for solid companies yielding at least 6% with strong dividend coverage."

"Since 1926, dividends have accounted for approximately 32% of the S&P 500's total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and potential capital appreciation are essential to 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 past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%)."

Dividend stocks, particularly high-yield names with strong coverage, supply substantial income and contribute meaningfully to overall investment total return. Total return equals income plus stock appreciation, illustrated by a $20 stock paying a 3% dividend that rises 10% to yield a 13% total return. With nearly 10,000 U.S. public stocks, screening is necessary to find high-yield opportunities; screening identified companies yielding at least 6% with strong coverage as potential total return champions for 2026. Historically, dividends accounted for roughly 32% of S&P 500 returns, and dividend payers outperformed non-payers over the past 50 years.

Read at 24/7 Wall St.