Growth Vs Income stocks

I guess growth could become income rather than capital gains. If the yield remains the same as price rises and your average price stays static then you will be getting ever increasing yields on your initial investment. This could also apply the other way around.

Hard to establish an actual plan and stick too it.

Simply put one can easily evolve into another and vigilance is key to determine how you play it.

I’d like to know if other people just categorise these, leave them be for so long, or whether people scrutinise them frequently to see if their stance in a stock changes?

I did think that, anyway I can transfer it?

Edit: figured it out

I think when the yield goes up the share price will also go up, as the shares will be more attractive because of the high yield.

Yeah but when that happens the yield goes down as the yield is a reflection of the price and dividend per share. that’s my point if you get my logic?

Invest at 30p 3pc yield
Price per share becomes 60p still has 3pc yield

This is in affect a 6pc yield on your initial 30p investment. Hope this makes sense.

Yes what you’re referring to that I’ve put in bold is called yield on cost, and is why holding a strong dividend grows over a long period of time can be very successful. One of my first videos I made was about this subject if you’re interested. Not the best quality but content is still great. Really interesting to see how much Realty Income has returned!


Hmmm, because I’m new to investing I’m trying all kinds, growth, income, value (fundamentally based) and swing trading (technicals) guess I’ll figure out which suits me best. I guess when I remortgage to feed my t212 habit I’ll have to call it a day when I have no equity left or I’ll find the right approach for me, maybe a combo.

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You’ll be ok, it’s actually harder than it looks to lose a lot of money if you just diversify. Except in CFD

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Yeah I’m not shorting, that’s a slippery slope.

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Doesn’t need to be necessarily shorting, CFD is betting on price direction. But still an easy way to lose a lot of money.

Yeah I know but why go long on a CFD when you can just buy the stock?

I know I’m probably missing something? Tax related?

leverage. by owning the stock you remain limited by your available funds, but with CFDs you can play at a higher level of capital but with associated risk.

in the scenario where you believe the market will go up consistently over time for a particular asset, you can claim greater returns in profit from going long with a CFD than holding a stock in your portfolio.

you also don’t need the stock to go up by as much to make the same amount of profits on a successful CFD holding compared to an equivalent stock holding (based on personal capital). the counter risk is that if things are going down and you made the wrong call, you can make a hefty loss much quicker.

Ultimately, CFDs are a faster way to see returns on your money if you have done all your due diligence and believe you know which way the market will lean by the next day/week. Had I enough earnings to max my ISA limit, I would likely start to put a bit aside in my CFD account rather than my Invest account since it would give me the opportunity to see the effect of my decisions on how much wealth I can generate for the future. Safe to say, I wouldn’t be doing very many trades, but they would be ones I feel very strongly about and could secure a hefty reward if right, profits being moved over to the INVEST account to prevent the position running out of control :stuck_out_tongue:

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Thanks Dao makes sense

This is pretty much perfect as a thing to do. I personally don’t have the ability to assess growth s rocks most of the time and I have doubts about the legitimacy of dividend investing as a strategy for making money. But I’m happy with a value approach.

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Yeah I am not schooled enough to truly understand growth other than some basic ratios, news/policies/sentiment and benchmarking.

Dividend stocks are a legitimate way of building wealth as long as you’re selecting quality companies that grow and grow their dividends.

But it’s certainly not the fastest way. All the strategies mentioned are legitimate. It’s just a case of finding which one fits within your personal preferences and risk tolerance.

I do a bit of all of them with the main focus being a solid core of dividend paying quality stocks.

To be clear: I’ve no objection to stocks that pay dividends. I’m aware that such stocks are mainly solid companies that are well-run and have good prospects. What I’m doubtful of is that making through these stocks has anything whatsoever to do with their dividend. The dividend is, as far as I can see, irrelevant at best. I’m still thinking my way through this one, though, so I might try to recruit some help in a different thread on this forum…

I guess it depends on the inflation rate as well

Yes, in what you say the dividend is irrelevant. It all depends on what your expectations and desired results are.

I mean if inflation was 2% and dividend yield 3% would take you 100 years to double your money. If nothing else changed.

Well there is where dividend growth comes in play and Yield on cost.

Surely dividend is not static. :slight_smile: