A reader asked; “which is better, growth stocks or income stocks?” What is the difference between growth stocks and income stocks? I want to know the advantages of the two and which is more profitable?
Message Received from: Francis, UAE via email
“If you can combined both, stock market investing will become more profitable. The stocks that can pay you high dividends are called “income stocks”. While growth stocks will pay you little or no dividends because these stocks relies on their value”.
Related: Ex-Dividend Date Meaning and Definition
Growth Stocks Vs. Income Stocks: Which is Safer?
Growth stocks is less safer than income stocks. However, income stocks don’t make as much profits but they can give your money a guaranteed return.
Learn how can you make stock market investing to be profitable.
Don’t just invest money. Invest wisely. We oftentimes read and heard those statements. Stock market investing is a high risk types of investment. Even there are growth stocks or income stocks, noone can predict when will the stock market crash. Yes, growth stocks and income stocks often times are blue chips stocks. Blue chip stocks are from stable companies. They are stable and safe. However, stock market investing is not safe.
Learn to manage risks. Learn to choose the best stocks to buy. Know when to buy and know your plan when should you sell your stocks. I hope this post gave you an idea about growth stocks and income stocks. Just bear in mind growth means appreciation while income means dividends.