Comments on: Better To Invest In Growth Stocks Over Dividend Stocks For Younger Investors

By: Hannah Saywell

Hannah Saywell — Fri, 29 Aug 2025 12:36:02 +0000

Hi :)

I’m 24 and really enjoyed reading your post!

I do have a question though. I’ve been doing a lot of research, but I’m a little unsure when you mention “investing in growth stocks.” Do you mean buying individual stocks like Apple or Microsoft, or could that also mean something like VOO or QQQ?

Not that I’d call myself an expert, but I do agree with the idea of taking on more risk while you’re younger—like at my age.

Right now, I’m am doing a lot of reading up and studying. My plan is to put most of my money into ETFs/index funds, and then invest the remaining amount into individual stocks.

Thanks in advance for the clarification!

By: Pail Jones

Pail Jones — Sun, 03 Mar 2024 23:47:34 +0000

I read recently that Apple has abandoned its Apple Car project after spending more than $10 billion since its starting the effort in 2014. Apple is almost everyone’s idea of a growth stock. I own it as both a direct investment and in various index funds.

But the idea that fast-growth companies always know best how to invest their cash is put to the lie by this story in the New York Times. https://www.nytimes.com/2024/02/28/technology/behind-the-apple-car-dead.html

Indeed, there’s a strong argument to be made that regular and rising dividends keep management disciplined on the business at hand rather than chasing bad development projects like the Apple Car or ill-conceived mergers and acquisitions. We can all think of companies that went on an acquisition spree only to sell their acquired companies for pennies on the dollar a few years later.

As an investor, I would have much rather preferred that Apple would have put some of that $10 billion back into my pockets via dividends.

By: Vaughn

Vaughn — Sun, 03 Mar 2024 19:16:29 +0000

As always, thanks for your writing. Shouldn’t the debate be between growth and value though? I understand that most high yielders fall into the value category, but what constitutes a value stock is more than just the yield, specifically it’s valuation.

One of the things you pointed out was that younger people ideally would be more concerned about larger gains in their early years versus lower risk/lower volatility. What isn’t mentioned is that value stocks over the longterm have outperformed growth. So if we’re concerned about longterm gains, wouldn’t a good value fund be more ideal?

By: Ben

Ben — Sun, 03 Mar 2024 16:00:16 +0000

Hi Sam. I just wanted to say that I totally agree with your point on growth investments and dividend investing is just a tool people use to feel more comfortable about the ups and downs of the market even though dividends aren’t guaranteed. HOWEVER I do think there’s one thing that people miss and that is that as a retail investor you can use stop losses (we can get out of a stock in seconds unlike institutions) and technical analysis to limit risk and time the market at the same time as using fundamental analysis to pick growth stocks. No one needs to sit through a 30-50% drawdown in their portfolio and by using the tools mentioned above, you drastically reduce your downside risk whilst taking advantage of the upside in markets like the one we see today.
Love your work.
Ben

By: Marv

Marv — Fri, 25 Aug 2023 00:27:40 +0000

There is a growth fund, that screens for PE, return of equity,
and leverage… the S&P 500 GARP fund. (Growth at a Reasonable Price).
Ticker SPGP.

Less volatile, and more defensive than other growth funds.

Thoughts about GARP investing?

Great article, thank you.

By: Mike Toney-Hoffman

Mike Toney-Hoffman — Fri, 28 Oct 2022 00:04:58 +0000

While growth stocks are a great way to try to maximize your returns on the stock market, the chance of failure is also high.

What do you say to everyone who lost more than half their investment portfolio this year?

Dividend and index investing are not sexy, but at least you will survive market volatility and be sure your portfolio will do well in the long run!

Using stocks like Tesla as an example is fine, but how many other growth companies go bankrupt or don’t make it?

By: Jeremy Masson

Jeremy Masson — Sat, 04 Dec 2021 16:08:39 +0000

Hi – Thanks for the great content. In your $1,000,000 example you mention an 80/20 split between stocks and bonds. Is this example strictly for stocks and bonds only? In you Net Worth Allocation article, the overall investment splits are different by age when real estate allocation is included.

Thank you,
Jeremy