Our December High-Yield 6% Dividend Stocks Have Big Total Return Potential

2 weeks ago 11

Lee Jackson

Tue, December 2, 2025 astatine 8:42 AM CST 8 min read

Investors love dividend stocks, particularly those with precocious yields, due to the fact that they supply a important income watercourse and connection important full instrumentality potential. Total instrumentality includes interest, superior gains, dividends, and distributions realized implicit time. In different words, the full instrumentality connected an concern oregon a portfolio consists of income and banal appreciation. Let's analyse the conception of full return. If you acquisition a banal astatine $20 that pays a 3% dividend ($0.60 per share) and the terms rises by 10% to $22 successful a year, your full instrumentality is ($22 + $0.60 − $20) = 13%. This combines terms appreciation and dividends received.

With the trading twelvemonth coming to an end, galore investors volition beryllium looking to reset for 2026.
Should the S&P 500 adjacent astatine astir the aforesaid level it is trading astatine present connected 12/31, we volition people the 3rd consecutive twelvemonth of double-digit gains.
While AI and hyperscalers volition stay a absorption successful 2026, full instrumentality whitethorn beryllium connected galore investors’ minds aft a large three-year run.
Some investors get affluent portion others conflict due to the fact that they ne'er learned determination are 2 wholly antithetic strategies to gathering wealth. Don’t marque the aforesaid mistake, learn astir some here.

There are astir 10,000 publically traded stocks successful the United States; not adjacent the astir intelligent investors with the champion tools tin find them each immediately. Many investors and traders typically support a tiny database of cardinal stocks they travel erstwhile seeking superior gains oregon high-yield dividends. We decided to surface our 24/7 Wall St. high-yield database for coagulated companies yielding astatine slightest 6% with beardown dividend coverage. Five of the stocks that deed our screens for December are imaginable full instrumentality champions that could connection investors a creaseless thrust successful 2026, arsenic we could spot immoderate large selling astatine immoderate constituent adjacent year. All are rated Buy astatine the apical Wall Street firms we cover.

Since 1926, dividends person accounted for astir 32% of the S&P 500's full return, portion superior appreciation has accounted for 68%. Therefore, sustainable dividend income and imaginable superior appreciation are indispensable to full instrumentality expectations. A survey by Hartford Funds, successful collaboration with Ned Davis Research, recovered that dividend stocks delivered an annualized instrumentality of 9.18% implicit the past 50 years (1973 to 2023). Over the aforesaid timeline, this was much than treble the annualized instrumentality for non-payers (3.95%).

Altria Group Inc. (NYSE: MO) is 1 of the world's largest producers and marketers of cigarettes and different smokable and oral tobacco-related products successful the United States. Its banal offers worth investors a 6.26% dividend yield, a compelling introduction point, and a generous 6.92% dividend yield.