Dividend stock vs. growth stock: What's the difference?
Asked 4 years ago
What's the difference, and which is better to buy dividend stock or growth stock?
Andrew Moran
Thursday, November 11, 2021
The primary difference between a dividend stock and a growth stock is that you are concentrating on either regular dividend payments or the asset's share price.
Dividend stocks are added to portfolio's for long-term income, while growth is to generate a profit on a buy low, sell high mentality.
Growth stocks are typically higher risk than dividends since the former deals with volatility and speculation and the latter focuses on well-establish equities and cash flow.
Choosing which one depends on your needs. A dividend stock is about long-term holdings giving you a steady income. A growth stock is locking in short-term profits to enhance your liquidity.
Put simply, dividend is a steady rate of return, and growth is all about the capital gains.
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