• chicken@lemmy.dbzer0.com
    link
    fedilink
    arrow-up
    1
    ·
    9 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/they]@lemmy.ml
      link
      fedilink
      arrow-up
      2
      ·
      9 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.