• Cowbee [he/him]@lemmy.ml
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    8 months ago

    Growth is more valuable than dividends, and there’s always more room for growth in the eyes of investors.

    • chicken@lemmy.dbzer0.com
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      8 months ago

      Growth is more valuable than dividends

      Shouldn’t that depend on the dollar amounts? Why would $X of dividends be worse than $X of stock growth? And if growth just isn’t in the cards anymore, it would be in reality a worse bet as the companies pour resources into a black hole of false hope and self sabotage seeking something that isn’t actually going to happen.

      • Cowbee [he/him]@lemmy.ml
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        8 months ago

        Growth stocks rise more because they carry more risk than steady dividend payouts. In a perfect dividend world, dividends would match growth, but because there is inherent risk in growth stocks there is a larger upswing

        There are competing schools of thought in the investment world, and Growth has solidly beaten Dividend investing. Even better, going for a market-weighted global index fund is best.

      • LordWarfire@feddit.uk
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        8 months ago

        You don’t pay tax on growth, you do on dividends. For large shareholders a high dividend can be a problem. Even for me, a very small time retail investor, I have to keep a balance of growth (like Apple) and dividend (I tend to use a dividend ETF so I can fairly reliably estimate my dividends) so I can avoid paying tax on the dividends.