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.





Write an answer...

Cancel

Please follow our  Community Guidelines

Related Articles

Is AvaTrade the Trading Platform Any Good?

Is AvaTrade the Trading Platform Any Good?

Filip Dimkovski

June 10, 2021

Can't find what you're looking for?