Growth Stocks vs. Dividend Stocks

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?

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.

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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 of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Eric Cuka owns Alphabet (A shares), Amazon, CrowdStrike Holdings, Inc., and Vanguard S&P 500 ETF. The Motley Fool owns and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Cisco Systems, CrowdStrike Holdings, Inc., Meta Platforms, Inc., Netflix, Starbucks, and Vanguard S&P 500 ETF. The Motley Fool recommends Johnson & Johnson and recommends the following options: short April 2022 $100 calls on Starbucks. The Motley Fool has a disclosure policyEric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.  

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