05-06-2014, 08:27 PM
Adding dividend growth rate with dividend rate will give you the total return if you assume a constant yield. A constant yield of 3% on stocks like JNJ, KO, CLX isn't out of the question, but the comparison really only applied to matured companies. A stock with a yield of 1%, growing at 20% a year, shouldn't be compared to a KO that pays 3% and grows 6% a year.