The Great Growth Debate (Part 2): The Benefits of Dividend Growth Stock Investing

In part one, I took the position that a true growth stock strategy, especially a high growth stock strategy, would by definition outperform a dividend growth strategy. Then I cited three examples that illustrate just how powerful the long-term ownership of a true growth stock could be. The main objective, however, was not to attempt to prove that growth stock investing was better than dividend growth stock investing. In truth, the concept of better is not necessarily dependent solely on total return. Because, as I also pointed out in part one, although growth stocks will outperform in the long run, the level of risk taken to get that performance can be extremely high. There are many reasons why a true growth stock is riskier than a dividend paying growth stock. Some of the risk can be allocated to the extreme difficulty of being able to grow a business at... Read more