dividend \ growth stocks mix

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
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Riseandshine
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dividend \ growth stocks mix

Post by Riseandshine »

Hello everyone, new in the forum :D
iv'e started investing about a year ago, and of course i'm reading and learning constantly;
with new funds entering to increase my portfolio iv'e come to a dilemma about what precentage to divert to growth stocks, and how much for dividend stocks.
As a student entering college, this is probably the last big deposit i'll make over the course of the next 4 years, so im intersted in both cash to reinvest, yet withould missing great growth opportunities.
And tha'ts my question for you - What would you consider as an optimal growth \ dividend paying stocks mix in your portfolio? would love some examples \ comments about how and why.
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cannew
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Re: dividend \ growth stocks mix

Post by cannew »

You probably don't have a lot of funds to invest and probably you will be investing and letting is sit. It's great that you are taking the time to learn before jumping in.
For our grand daughter, she has a DRIP with one of the Cdn bank stocks and adds $100 per month from her part time job. Then she just lets the dividends get reinvested and compound. She never checks the price of the stock or even how much she receives in dividends, which has being growing steadily. At some point she will open a TFSA and transfer shares, but she'll only worry about that when is has to pay taxes, which she currently does not.

Lots of choices so its really up to you and your goal for the funds.
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Peculiar_Investor
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Re: dividend \ growth stocks mix

Post by Peculiar_Investor »

Welcome to FWF.

Personally I don't classify stocks as dividend vs. growth stocks, I look at individual stock purchases from the point of view of buying part of the business, so I want a solid business with good management. There are lots of ways to define/analyze "solid business" and "good management", I leave that as an exercise to the reader.
Riseandshine wrote: 06 Feb 2018 04:50 iv'e started investing about a year ago, and of course i'm reading and learning constantly;
Might I add to your reading list with our introductory wiki article, Getting started - finiki, the Canadian financial wiki. From my perspective for the new investor there is lots to learn before every reaching the point of making buy and sell decisions. The more time upfront you can devote to understanding and planning, the better off you'll be to remove the "emotion" and behavioral aspects of investing.

If you do insist on jumping in immediately, then rather than deciding between dividend and growth stocks, I'd gravitate towards one of the Simple index portfolios because they give you broad diversification at a low cost, which gives you the greatest opportunity to grow your investment funds. That's how I've advised my adult children on how to invest their money.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

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