1 Magnificent High-Yield Stock Down 25% to Buy and Hold Forever

Notice how the mortgage real estate investment trust's (REIT's) dividend (the blue line) spiked after the IPO, but then reversed course and has now been heading lower for years. The stock price (the purple line) basically followed the dividend higher and then steadily lower. If you'd spent your dividends to pay for living expenses, you would have ended up with less income and less capital. Yet the total return (the orange line) is strongly positive, largely thanks to the reinvestment of that huge dividend. ...