Stock Investing — Intermediate: Dividends & Total Return
Some companies return cash to shareholders via dividends . Total return = price change + dividends (often reinvested). Dividend yield and payout ratio...
Some companies return cash to shareholders via dividends. Total return = price change + dividends (often reinvested). Dividend yield and payout ratio indicate sustainability. Steady dividend growers can compound powerfully over decades.
Key takeaways
- Total return combines price change and dividends.
- Payout ratio signals dividend sustainability.
- Reinvested dividends compound significantly over time.
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