MY EXACT Dividend Stock Portfolio -- See it in M1 Finance! ||
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When we think about investing for the Average Joe, one of the biggest questions to ask is: Should you invest for Dividends or Growth?

WHAT IS THE DIFFERENCE BETWEEN DIVIDEND INVESTING AND GROWTH INVESTING?

Dividend investing involves a focus on investing in companies that pay dividends consistently to shareholders. Companies that pay dividends tend to be larger companies that are well-established like McDonald’s or Coca-Cola.

Growth investing involves a focus on investing in companies that are experiencing growth that is above-average. Companies that are in the growth stage of the business cycle can be large companies, mid-size companies, or small-cap companies. Think of companies like Amazon, Google and Apple.

WHAT DO COMPANIES DO WITH PROFITS?

When a company has profit, it chooses to primarily do 1 of 2 things:

1. Re-invest the profits back into the business to grow the company at an even faster rate.

2. Pass those profits back to the shareholders of the company in the form of a dividend.

SHOULD I INVEST FOR GROWTH OR DIVIDENDS?

Investing in dividend companies can provide a smoother, more stable and less risky path to wealth because companies that pay dividends tend to continue to pay dividends and at an increasing rate each and every quarter and year.

That being said, you definitely do NOT want to miss out on the market performance that comes with growth stocks and the overall stock market.

HOW TO START INVESTING IN GROWTH STOCKS OR DIVIDENDS?

For the Average Joe, I recommend getting started investing growth stocks by investing in an ETF or Mutual Fund that tracks these segments of the stock market. Here are (3) great ETF’s that will give you the right exposure:

- Vanguard S&P 500 ETF | Symbol VOO | VFIAX
- Vanguard Total Market ETF | Symbol VTI | VTSAX
- Vanguard Small-Cap Growth ETF | Symbol VBK

For the Average Joe, when it comes to dividend investing, you can invest in individual stocks or a Dividend ETF.

- Vanguard Dividend Appreciation Fund | Symbol VIG
- Vanguard High Yield Dividend ETF | Symbol VYM

My name is JOE and I am just your AVERAGE JOE ON MONEY. This channel talks about ALL THINGS personal finance that help people like YOU and I, the Average Joe, learn the fundamental principles of money and win with our finances.

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