Dividend Yield Returns

Dividend yield returns refer to the total return on investment earned by shareholders through dividend payments, in addition to any capital appreciation of their stocks. Unlike capital gains, which come from the sale of securities at a profit, dividend yields are distributed directly to investors by companies that retain earnings beyond what's needed for operational and growth purposes.

The Benefits of Focusing on Dividend Yield Returns

Investors seeking relatively stable income streams often prioritize dividend yield returns over potential capital gains. This approach involves selecting stocks with consistent dividend payouts or those that have historically increased their dividends over time, indicating financial health and stability.