The Globe and Mail reports in its Saturday, Aug. 29, edition that it is a common belief among retail investors that every stock with a low yield is to be avoided and every stock with a high yield is desirable. The Globe's John Heinzl writes in the Yield Hog column that plenty of stocks, however, with modest yields have produced fabulous long-term returns. Shares of Enbridge, for example, were yielding about 3 per cent 10 years ago. Since then, the dividend has grown at an annualized rate of about 13 per cent, and the share price has tripled on a split-adjusted basis. An investment of $10,000 in Enbridge 10 years ago would be worth nearly $40,000 today, assuming all dividends were reinvested. Mr. Heinzl says if you had given Enbridge a pass based on its modest yield, you would have missed out on some very attractive gains. Mr. Heinzl says when assessing a stock, it is important to remember that the total return comes from two sources: dividends and capital growth. It is also important to understand that if the company's revenue and earnings are growing, the dividend will also likely rise. So a dividend that looks small initially can become substantial after years of compound growth.