Dividend stock vs. growth stock: What's the difference?

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.