valuation overhang can mean dead money, dividends can lift total return.
Eversource’s long valuation drawdown can create dead money, but buying at attractive valuation improves the chance to capture total return via dividends.
Eversource is used as an example of how high valuation can stagnate performance for years, illustrating the “danger of overvaluation.” The payoff in the example comes from waiting for attractive valuation and then benefiting from dividend income as total-return support.
"Building a Retirement Paycheck: A Dividend Growth Portfolio Based on Value Investing Principles"