"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. 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%."
"Blue chip stocks are shares of large, well-established, financially stable companies with a consistent and reliable performance history. They are often considered less risky and are a popular choice for long-term investors. Additionally, nearly all leaders in the category pay dependable, recurring dividends each quarter, regardless of the state of the economy. The term "blue chip" originated in poker, where it refers to the highest-value chip."
High-yield blue-chip dividend stocks offer significant income and strong total return potential by combining reliable dividends with price appreciation. Total return equals income plus capital gains; for example, buying a $20 stock that pays a $0.60 dividend and rises to $22 yields a 13% total return. Blue-chip stocks are large, well-established, financially stable companies with consistent performance and they typically pay dependable quarterly dividends. A screen of a blue-chip dividend database identified five companies with at least a 4% dividend yield, and all five received Buy ratings from major Wall Street firms. Dividends comprised about 32% of the S&P 500's total return since 1926, and a Hartford/Ned Davis study found dividend payers returned 9.18% annually from 1973–2023 versus 3.95% for non-payers.
Read at 24/7 Wall St.
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