Why should a young investor invest for dividends rather than growth?

Hi Willie!
Young investors who are able to take more risks, are often encouraged to build a more aggressive growth portfolio and transition to a dividend portfolio in the future, under what circumstances should a young investor invest for dividends rather than growth?
On a separate note, I really enjoyed the retirement garden analogy you used in your article 'How to Live Off Dividends in Your Retirement Guide 2020'! :)

AMA Dividend Titan

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Gerald Ho

12 Feb 2021

The only scenario young investors should look at dividend investment is that they already have a substantial high 6 figure amount to start off with i.e. trust fund/ inheritance. Dividend investment in this case would be a form of capital preservation.

If not, young investors should always opt for either a diversified portfolio (growth + dividend), eg. Investing in companies like apple is able todividends + stock appreciates exponentially, or going all out to grow their portfolio with high growth companies like Tesla or Amazon.

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wallflower

10 Feb 2021

Diversify.. some dividend stock + growth stock :) Not many companies are doing well in the current economic landscape so dividends are not as good as before.

Look at trends of past dividend payout, those that have increased over the years might be a better choice.

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