Dividend income is often overlooked amid gyrations in the stock market. Consider that in 2024, market bulls were boasting about 24%-plus S&P 500 returns. No one was very focused on the broad market index's 1.2% dividend yield. But dividends are an important element of return, and 2025 for a while was bearing that out. Through May, the S&P 500 was up a thin 1.1%; without dividends, there was essentially no returns at all. Of note, dividend income accounted for 42% of the total return of the S&P 500 between 1930 and 2012, according to Hartford Funds. And that's just the average. In some of those decades, dividends accounted for more than 50% of total returns and even 100%. More recently, dividends have accounted for a smaller portion of returns, at around 15%-20%. But not all dividends are created equal, though, and it is important to understand the difference between the two main investment categories: high-yield stocks and dividend-growth stocks.

Constellation Energy is the nation's largest producer of carbon-free energy and a leading supplier of energy products and services, including sustainable energy solutions to homes, institutional customers, the public sector, community aggregations, and businesses, including three-fourths of Fortune 100 companies. Constellation's mission is to accelerate the transition to a carbon-free future. Constellation provides energy to over 15 million homes and businesses with over 31,600 megawatts of capacity. The company's nuclear fleet is the nation's largest. The company has approximately 15,000 employees. CEG shares are a component of the S&P 500.

The major indices are lower at midday Tuesday, with the Nasdaq down more than 1%. Inflation is rising faster than expected. Headline CPI came in at 3.8% for April, in line with consensus but well above the 3.3% pace the month before. Core CPI was 2.8% for April, above the 2.7% forecast and 2.6% rate the month before. Crude oil is at back up and is now at $102 per barrel.

Constellation Energy is the nation's largest producer of carbon-free energy and a leading supplier of energy products and services, including sustainable energy solutions to homes, institutional customers, the public sector, community aggregations, and businesses, including three-fourths of Fortune 100 companies. Constellation's mission is to accelerate the transition to a carbon-free future. Constellation provides energy to over 15 million homes and businesses with over 31,600 megawatts of capacity. The company's nuclear fleet is the nation's largest. The company has 15,000 employees. CEG shares are a component of the S&P 500 Index.