When it comes to growth stocks and dividend stocks, which should you invest in? The answer depends on you, since every investor has unique goals, timelines, risk tolerances, and overall suitability. I’ve been investing over 20 years, and there has always been a debate over which investment strategy is best. There seems to be a massive divide. Most people feel like you have to choose a side: either growth stocks or dividend growth stocks.
I believe the best stock market portfolios have a blend of both, and each portfolio is tailored to the individual. If you are a younger investor or have a higher risk tolerance, growth stocks can be used as a way to outperform the market and accelerate wealth. Of course, the stock market does not simply go up every day, and it has its ups and downs.
In today’s video, I explain and categorize stocks into buckets. I explain the differences between growth stocks and dividend stocks. For example, Robinhood‘s most popular dividend growth stocks include Starbucks (NASDAQ: SBUX), Walmart (NYSE: WMT), and Pepsi (NASDAQ: PEP). These are great companies that continue to increase their annual dividends to shareholders. But how do these dividend growth stocks compare to growth stocks like Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) over the past decade?
People are also reading…
Which type of stock is best for you? Watch the below video to find out, and please don’t forget to subscribe to the channel.
*Stock prices used in the below video were during the trading day of April 26, 2022. The video was published on April 26, 2022.
10 stocks we like better than Starbucks
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Starbucks wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
*Stock Advisor returns as of April 7, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director …….