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Anonymous

12 Nov 2020

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General Investing

Under the assumption one is well diversified, why would investing in a company with a 1% div and high growth rate be better than investing in a company with 3% div and lower growth rate?

I see a lot of people talking about focusing on dividend growth rate and not current yield.

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Jing Wei

12 Nov 2020

Generally, high growth companies have a higher potential future returns compared to stable dividend companies.
(But of course nobody can predict the future)

Secondly, if you invest in the US market. There is a 30% dividend withholding tax. There is no capital gain tax. So its probably not a good decision to invest in high dividend companies.

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