William Rouse 
July 13, 1996 
William Raymond Rouse, 54, Of Mesa Oaks Circle, Austin, Texas, Died Saturday 
In Austin.

A Giant Inclination 
Big Brothers-big Sisters Stands To Benefit From Annual Hill Climb

Sunday, July 14, 1996 &nbsp;&nbsp;&nbsp;&nbsp;Page: 





Growth stocks stem inflation &nbsp;&nbsp;&nbsp; 
 Investments are frequently characterized as being either growth- or
income-oriented. However, many investors are in the market for both and find
their niche in ``total return'' stocks, which provide an attractive
combination of capital appreciation and incomeOne of the major advantages of
stocks has been their ability to offset the effects of inflation -- and no
category of equities has achieved this end better than growth stocks. A study
by Ibbotson Associates of Chicago revealed that small capitalization stocks,
generally the most aggressive type of growth stocks, appreciated at a compound
rate of 12.2 percent from 1926 to 1994, vs. 10.2 percent for common stocks as
a whole and 5.4 percent for government bonds. &nbsp;&nbsp;&nbsp; The primary purchasers of growth stocks tend to be younger investors, who
enjoy a significant "window of opportunity" before they will have to tap into
the funds because they have other sources of current income. &nbsp;&nbsp;&nbsp; 
 But whether you are planning for retirement or already enjoying it, a
component of growth in your portfolio is essential to combat inflation and
retain purchasing power over time. &nbsp;&nbsp;&nbsp; 
 The size of your growth stock component will, of course, depend on your
objectives and tolerance for risk. Although past performance does not
guarantee future results, when choosing a specific growth stock, earnings
growth -- both historical and forecasted -- is the most important
consideration. &nbsp;&nbsp;&nbsp; 
 At the other end of the spectrum are high-yielding stocks. Older investors
use the dividends from such stocks as a source of current income. However,
studies have shown that high-yielding stocks can be an important component of
any portfolio, particularly if dividends are growing and can be reinvested.
The financial soundness of a company is the most important consideration when
purchasing a stock for its dividend. &nbsp;&nbsp;&nbsp; 
 Stocks categorized as "total return" contain elements of both growth and
income stocks. Their yields, which are generally moderate, can help support
the stocks through difficult markets and economies. Moreover, they generally
have good earnings records and prospects and, therefore, have the potential to
provide impressive share price appreciation. An investor calculates his or her
total return by adding the benefits of both dividends and capital
appreciation. &nbsp;&nbsp;&nbsp; 
 For example, if you purchased a stock for $50, and it rose in value to $60
in one year (a $10 change), your capital appreciation would be 20 percent. &nbsp;&nbsp;&nbsp; 
 If the same stock provided you with a $2 per share annual dividend, based
on your cost basis, your dividend would be 4 percent. &nbsp;&nbsp;&nbsp; 
 Your total return for the year on this investment would consist of the
capital appreciation plus the dividend yield, 4 percent -- or 24 percent in
total. &nbsp;&nbsp;&nbsp; 
 Rob Smith is an account executive for Dean Witter Reynolds in Scranton. The
company also has offices in Wilkes-Barre. &nbsp;&nbsp;&nbsp;

Growth Stocks Stem Inflation 
Investments Are Frequently Characterized As Being Either Growth- Or 
Income-oriented. However, Many Investors Are In The Market For Both And Find 
Their Niche In ``total Return'' Stocks, Which Provide An Attractive 
Combination Of Capital Appreciation And Income.

Growth Stocks Stem Inflation Investments Are Frequently Characterized As Being Either Growth- Or Income-oriented. However, Many Investors Are In The Market For Both And Find Their Niche In ``total Return'' Stocks, Which Provide An Attractive Combination Of Capital Appreciation And Income.