Level Up Your Dividend Income With GROWTH! (7 Reasons To Invest For Growth While Dividend Investing)

Should I Invest For Growth? (Dividend Income vs Growth Investing) Level Up Your Dividend Income With Growth! 7 Reasons to invest for growth!

Common questions I receive on this channel related to this topic include:
- Should I invest for Growth?
- Should I invest for dividends or growth?
- Should I invest for both dividends And growth?

I think this video will address many of these questions.

Time stamps so you can jump to/rewind to any point in the video.
1:20 - Dividend vs Growth Investing - What is it?
4:07- 7 Reasons to Consider growth investments
9:03 - Examples of Growth Stocks vs Dividend Stocks
12:10 - How much to allocate to growth vs dividend investments?
7:53 - How taxes for for dividends and rental income
10:05 - Which one is easier to track for taxes?
13:37 - Special Bonus :)

Our complete investing library can be found here:

Stock Market Investing: https://goo.gl/hi2kK4

Dividend Investing Playlist: https://goo.gl/njSrk2

Other important videos:

How To Buy Dividend Stocks: https://youtu.be/isDiBoFxH-g

Roth IRA Rules Explained: https://youtu.be/3MzZfRrgEYg

How Rich Can A Roth IRA Make You: https://youtu.be/2nx0vHGNVmE

Articles regarding dividends and growth investing

https://seekingalpha.com/article/4160469-dividend-vs-growth-investing-3-charts
https://seekingalpha.com/article/4253737-dividend-growth-stocks-provide-growth-growth-stocks
https://seekingalpha.com/article/4230005-advice-young-dividend-growth-investors
https://www.reddit.com/r/personalfinance/comments/929jzi/as_a_young_adult_dividends_or_growth/
https://www.financialsamurai.com/better-to-invest-in-growth-stocks-over-dividend-stocks-for-younger-investors/
https://www.educba.com/dividend-stock-vs-growth-stock/
Companies who invest the profit back in its operations or expansion are considered to be growth companies.

Companies who on the other hand pay out dividends to its
investors rather than investing in its operations are considered to be dividend-paying
Companies

Some companies pay no dividends like Amazon, Netflix and Facebook, Telsa as an example. These companies are 100% pure growth.

While other companies have a hybrid approach whereby the company is primarily focused on growth and reinvesting its profits but does offer a small yield to shareholders. Examples would include Microsoft, Apple, Starbucks and Disney

When I first started investing a lot of this stuff was confusing so help me classify an investment that is more growth focused vs dividend focused I came up with my own rule of thumb.This just my investing philosophy. This is nothing formal or official, but use it if helps you.

No dividend yield or yield of less than 1.5% to me that is an investment where the company is focusing on growth.

Yield 1.5% to 3% - Balance of growth and income

Yield 3% and up - Dividend income focus. Less growth focused.

You can look at etfs in a similar fashion, however, do realize that most etfs have lower average yields than individual stocks.

Dividend investing has become an extremely popular investing model these days however, let's discuss 7 reasons to consider adding growth investments to your portfolio even though you are truly a dividend investor at heart.

1. Total return - Dividend payouts are great, but what if you had the possibility to get even higher returns in a shorter period of time? Something you probably shouldn’t ignore an investor and many growth stocks and etfs can help you accomplish that.

2. You don’t need income right now as you are not trying to live off of your investments.

3. Growth stocks are generally perceived to be risker, Its easier to take more risk when you are younger since you have a longer investing time horizon, but this doesn’t mean you can’t still invest some in growth when you are closer to retirement.

4. Many growth focused companies still pay a small dividend yield so you can get a small dividend fix.

5. Investing for growth won’t generate additional taxable income unless you sale the investment at gain. Dividend payouts generate taxable income each year if the investments are held within a taxable account even if you reinvest them.

6. Although dividend payout increases have historically kept up with inflation, growth investments may put you further ahead of inflation than income focused investments.

7. You can use growth investments to grow a portion of your wealth faster. Then later on sale those investments off, and purchase income producing assets such as dividend paying stocks, REITs, bonds, etc. In other words use growth investments to help fuel your dividend investments later on in life.

from my experience I have found that investments that have both a growth and income feature can do perform very very well in certain markets. Many of these are dividend paying blue chip companies.

Видео Level Up Your Dividend Income With GROWTH! (7 Reasons To Invest For Growth While Dividend Investing) канала Money and Life TV