Read on Twitter
Dividend Stocks Vs. Growth StocksQuick Thread
1) What they bring to table:
Dividend stock: Stability and consistent cash flow
Growth stock: Higher returns, typically for investors who don’t need money (dividend payouts)
Dividend stock: Stability and consistent cash flow
Growth stock: Higher returns, typically for investors who don’t need money (dividend payouts)
2) Riskiness
Dividend Stock: less volatile, for people who have lower risk tolerance
Growth Stock: very risky, very volatile
Dividend Stock: less volatile, for people who have lower risk tolerance
Growth Stock: very risky, very volatile
3) Type of investor
Dividend Stock: value investors
Growth Stock: growth investors - appreciation
Dividend Stock: value investors
Growth Stock: growth investors - appreciation
4) Potential
Dividend stock: cash flow and some appreciation
Growth stock: capital appreciation
Dividend stock: cash flow and some appreciation
Growth stock: capital appreciation
5) Type of Company
Dividend stock: established companies
Growth Stocks: less established, investing profits they earn to grow
Dividend stock: established companies
Growth Stocks: less established, investing profits they earn to grow
6) Intrinsic Value
Dividend stock: need a lower “discount” to enter
Growth Stock: not too worried about “discount” because they bank on the price rising
Dividend stock: need a lower “discount” to enter
Growth Stock: not too worried about “discount” because they bank on the price rising
7) Performance in Bear Market
Dividend stock: even
Growth stock: bad
Dividend stock: even
Growth stock: bad
8) important ratios
Dividend stock:
-payout
-dividend yield
Growth stock:
-PE ratio
-PS ratio
Dividend stock:
-payout
-dividend yield
Growth stock:
-PE ratio
-PS ratio
Conclusion:
There are many more differences, but you must know what stocks you are getting into and what to look for
There are many more differences, but you must know what stocks you are getting into and what to look for
