Emphasizing total return is a good way to let the game come to you
The relative safety of dividend stocks makes them a
compelling choice at any time. However, at times when many equities (and entire
indexes) are posting negative growth, safe dividend stocks really shine. That’s
because these stocks generate regular income that investors can reinvest. This
boosts the total return of an investment.
Dividend stocks are usually stable companies with reliable
earnings that they reinvest for the benefit of shareholders. In bullish times,
this dividend can help to bring a stock’s total return on par with higher
growth stocks. And in bearish times, this can help to mitigate losses.
One frequently referenced component of dividend stocks is
the dividend yield. In general, a higher yield is better than a lower one. But
there are other factors, such as the sector a company is in, that provide
context for its yield. What many investors find more important is a company
that has solid fundamentals that support the current dividend and offer an
opportunity for the dividend to increase over time.
With that in mind here are seven safe dividend stocks with a
high yield that can boost your total return.
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