Most “first-level investors” believe that investing is an either-or proposition. A stock or fund can deliver eye-popping yield … or it can deliver breakneck growth. But not both.
That’s simply not true. We’ll prove that today by highlighting three stocks yielding 6% to 9% with 20% price upside to boot.
Remember, total returns are made up of dividends and price appreciation. The latter, price gains, are driven by some combination of:
- Dividend raises (which inspire investors to pay more for the stock or fund), and/or
- A climb towards fair value (a closing of the discount window in a closed-end fund’s (CEF’s) case, or a higher multiple on FFO for a REIT).