How can dividend yield be used in a total return investment strategy?

Responsive Ad Header

Question

Grade: Education Subject: Ddos
How can dividend yield be used in a total return investment strategy?
Asked by:
69 Viewed 69 Answers

Answer (69)

Best Answer
(369)
Dividend yield contributes to the total return of an investment, which includes both capital appreciation (stock price increase) and dividend income. Investors can use dividend yield as part of a strategy to generate consistent income while also benefiting from potential stock price growth. Reinvesting dividends can further enhance total returns through compounding.