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2024

Dividend yield & capital gains: 5 stocks with dividend yield of 4-6% and upside potential of up to 32%

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As an investor, what should you expect as return from capital gains if you buy a stock with a 4% dividend yield? Should you even own the stock? Also, if there is a 4% dividend yield and there is a corrective phase in the market, will the stock fall less because, as the price drops, the dividend yield increases? Sometimes stocks are tactical buys rather than long-term investments. In such cases, you acquire them for their dividends, keep them for the medium term, and sell when they give modest capital gains.