What is Total Return and Why Does it Matter [Podcast]

 

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We have often heard Mike say that he has a total return approach. But what does it really mean? What’s the total return’s definition and role? And if Mike focuses on total return, why doesn’t he pick companies showing higher capital gains that don’t pay dividends? All this and much more are being covered in this episode!

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You’ll Learn

  • Calculating your total return may seem quite simple. However, it is not that easy when you add capital throughout your investing life. Which period is the most useful to draw conclusions?
  • Is it relevant to compare your total return to a benchmark? How to select the right one (we have covered this topic in this episode)?
  • With a total return approach, why does Mike only select dividend stocks? Is he leaving tons of cash on the table by ignoring companies like Tesla, Google, Facebook, and so on?
  • Mike discusses the holdings with the most impressive total returns in his portfolio and the difference they can make.
  • Looking at Mike’s best total returns holdings, could we say that low-yield, high-growth stocks have better chances to outperform the market?
  • With that said, why do many investors focus on yield rather than total return?
  • How would retirees generate income with companies showing high total returns but low yields?

Related Content

Not all high-yield stocks are bad. Here I shared my favorite safe high-yield dividend stocks.

Here is Mike’s most recent Dividend Income Report if you’re curious about his portfolio.

What to Do in This Complicated Environment? – June Dividend Income Report

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This podcast episode has been provided by Dividend Stocks Rock.

The post What is Total Return and Why Does it Matter [Podcast] appeared first on The Dividend Guy Blog.

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