It’s been tougher to recommend dividend stocks to buy and hold in the past two years given the rise in interest rates.
After all, when you can buy a short-term Treasury bill that pays more than 5% and is fully backed and guaranteed by the U.S. government, opting for a dividend stock yielding 2.5% hardly seems sensible. Worse still, the average dividend yield of S&P 500 stocks is 1.52%.
Fortunately, for lovers of dividend stocks, it’s the total return that matters, not the dividend yield.
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