Usually, stocks that have a high dividend yield score low on capital appreciation. In fact, quite often, stocks with fat dividends tend to underperform the broader markets - or worse, deliver negative returns, before accounting for the dividends.
That said, Citigroup Inc. (C) is one stock that has an annual dividend yield of nearly 4%, and could double from these levels, according to one analyst. Here’s the investment thesis for C stock, and a look at whether the stock is a buy for its dividend and expected capital growth.
