High-yield dividend stocks have a rich history of delivering market-beating returns. In fact, the notion that high-yield dividend stocks (those with yields of 4% or greater) generally outperform other types of equities was a central theme in Charles H. Dow's 1920 iconic, posthumous publication, "Scientific Stock Speculation."

Surprisingly, though, the core reason these equities tend to generate outsized returns has more to do with their underlying value propositions, rather than their appeal as top-tier passive-income vehicles. Keeping with this theme, empirical studies have shown that the magnitude of a stock's dividend yield has little to do with its ability to beat the broader markets over the long run.

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Source Fool.com