Do growth or dividend stocks return more in the long run?

Hi there,

Alot of research went into answering this question and after decades of data, we finally got a definitive answer - on a whole, dividend paying companies out-perform growth companies in the long term.

The reason is that dividend companies must have a soild, stable & growing business to allow them to pay steady and increasing dividends over a long period of time. In Warren Buffet's words, they have an "economic moat".

Of course, there are outliers such as Amazon, Netflix, and now perhaps Tesla. But if you take an aggregate, dividend companies have definitely come out on top.

In this video, I show you my personal my Dividend Growth portfolio and have outlined 3 reasons why I've chosen it as my strategy of choice:

• Fits my goal of passive income

• Simplifies my investing decisions

• Outperforms the market in the long term

Watch the video here and I hope it helps :)​​​

Growth companies reinvests one's dividend into the company to grow one's business. Hence usually growth companies don't pay out dividend i.e. Tesla, Amazon. Hence Apple, I feel, has tapered from a growth company to more of a matured one.

It all boils down to what you are seeking from your investments:

If you want a steady stream of passive income = Dividend stocks.

If you want capital gains = growth companies.

In terms of quantum-wise, it depends on how much you are willing to put in. A decent amount would be more than $5,000 otherwise your commission would eat up a significant portion of your returns