Total Return

[hendi_alex]

Yes, but income that the company generates is relatively more important than the investor income that their dividends generate. Take a long time DG stock PBI for example. Earnings started to slide, the business became less relevant, eventually dividends were cut. Obviously DG growth investors focus heavily on total return, even if that is not a conscious activity. If they are watching the earnings performance of the company and they are watching the pay out ratio, in additional to the dividend growth rate, then they are also monitoring major components that will contribute to total return. Like I say, most DG stock are in fact good total return candidates. Perhaps one could do better long term by focusing on pure growth, but DG represents a good balance between dividends, capital gains, and total return.