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. Canadian National Railway's dividend, for example, was just 6.75 cents (split-adjusted) in 1996. Its dividend is now $1.25 -- an increase of 1,750 per cent. Many investors are drawn to stocks with large current yields, but these are not necessarily slam dunks. In fact, a high yield can be a danger sign. TransAlta, Yellow Pages and AGF Management all sported enticingly fat yields, but they eventually cut their dividends and their share prices plunged. Similarly, many energy producers had double-digit yields, but the payouts could not be sustained in the face of plunging oil prices. Mr. Heinzl says you have to look at much more than the yield to know whether a stock is a good investment. Mr. Heinzl says when assessing a stock, it is important to remember that the total return comes from two sources: dividends and capital growth.