Dividend stocks vs. growth stocks: Which are better?

Invest in Growth Stocks Over Dividend Stocks

If you're under 40 years old, putting the bulk of your equity exposure in dividend-yielding names is a suboptimal investing approach.

Growth stocks, on the other hand, are preferable to dividend stocks.

If you invest in dividend-paying stocks while you are young, you may expect filet mignon for the rest of your life. In the meantime, you'll be eating Hamburger Helper every now and then. You may be asking yourself, "Where's the party?" after you've reached your desired retirement age.

Dividend stocks will provide you with good returns over time, but you'd rather make money faster than later.

Take risks in the stock market as a small investor while facing an endless list of unpredictable endogenous and external factors, don't be a picky eater. Everything goes south when things go wrong. As a result, you should be rewarded with greater capital appreciation potential.

When interest rates rise or fall, growth stocks generally suffer far more than dividend stocks. As a result, as an investor in growth, you must be able to handle increased levels of volatility.