We recently compiled a list of the . In this article, we are going to take a look at where Park Hotels & Resorts Inc. (NYSE:PK) stands against the other extreme dividend stocks with upside potential.
Investors often prefer high-yielding stocks for immediate returns. However, dividend growth stocks offer more substantial long-term advantages, such as increasing income, capital appreciation, and reduced volatility. While many investors are drawn to the instant rewards of high-yield stocks, it's important to be cautious with excessively high yields, as they can indicate underlying financial difficulties.
Analysts recommend careful consideration when dealing with very high yields. That said, the stock market is a bit of a wild card—past performance isn't a reliable predictor of future outcomes. While dividend growth equities have provided strong returns in the past, high dividend yield stocks have also performed well, showing robust returns.
This is due to the stock market's inherent volatility—what works at one time may not be as effective later, and the timing of successes is often uncertain. Yin Chen and Roni Israelov, in their study , published in the March 2024 Journal of Asset Management, divided stocks into high-dividend and low-dividend categories based on their median dividend yield from the previous year. They examined how dividends affected investment returns under different scenarios.
Their research spanned from January 1964 to December 2021 and included the top 1.