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RE: Investing For Income Vs Investing For Capital Gains

in #money7 years ago

I see pros and cons to each depending on your age, starting capital, and goals. Younger investors, those with less capital, and those interested in more risk/growth would likely be better off focusing on capital gains, though I would be very interested in some examples and analysis of capital vs dividend investments.

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Different estimates show that dividends contribute anywhere from 30-90% of total returns for stocks, so with the right companies even younger people can definitely snowball the dividends over a long period with great results. I feel that the core of the portfolio should be bigger, dividend paying companies while the growth stocks should have a smaller place with money that can afford to be lost. I'll try to write more on this topic in the future too, thanks for the comment!