Growth of Capital or Income?

[hendi_alex]

The sum of the two gives total return, which IMO is the most meaningful metric. It doesn't matter whether one generates cash flow from a dividend stream or from selling a few shares to capture appreciation, the net result is the same thing. Dividends however give the benefit of flowing in even during a downturn, when selling shares might be painful. I used to chase yield, but now for the most part, settle for more modest yields, generally in the 4% to 6% range, while trying to focus on companies whose share price might appreciate more than pure income plays, and which may give a more solid total return. Still, my bias is toward dividends, as very few tickers that yield less than 3% will ever make the cut into the portfolio.