When it comes to stock investing, the divide between the growth and dividend strategies is not so cut and dry as it is in mutual funds. Broadly speaking, growth investing focuses on stocks that are expected to grow fast in the coming years, irrespective of the dividend payout. Growth stocks are characterised by high ratios—earnings growth, return on equity, return on assets, etc.
With the broader market remaining almost flat for the past five years, retail investors are finding it tough to generate decent returns from the stock market. Nevertheless, the expert stock pickers were able to generate good returns by shifting from high beta sectors to the defensive sectors. This 'hiding behind the defensives' strategy has also become risky now. Most of the stocks from defensive sectors like FMCG and pharma are quoting at lofty valuations.
Source: Economic Times
Related Articles:
- 10 Dividend Stocks Ignoring The 4% Rule
- Dividend Stock Bubble: Is It Even Possible?
- 8 Dividend Stocks To Consider While Waiting on Apple to Pay Its First Dividend
- Holding Bonds Could Push Your Portfolio Into The High Risk Category
- Love People, Use Dividend Stocks
Selecting Growth Or Dividend Stocks
Posted by D4L | Friday, September 21, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.