Dividends or Growth?

[Garpal Gumnut]

Agree to a point,

But I lean more towards dividends if you have margin loans to service debt as well, investors would be "crazy" not to have some portion of margin loan to claim interest rates for their investment.

Dividends are a good shield for dips in the markets.

But overall I think dividends, because when the market turns bullish you get "to eat your cake as well".

If the market was bullish enough for IPO's then I would go for growth.

Not investment advice unlike face book, my strategy would be to let the hype pass then buy on the dip, then go for growth.

Dividends are great for Self Managed Super-funds, because the dividends can {depends on your circumstances} actually give you a tax refund if you hold the shares for longer than 45 days as per tax rule, hence why blue chips stocks with juicy dividends are bullish.

All CEO's have to do is increase their dividends for blue chip companies and their market cap seems to be increasing more than the increasing dividend on offer.

Sorry I took so long to reply to your excellent post, 13ugsie.

With the Fed about to increase interest rates the trend here in Oz for Growth stocks with low or no dividend payouts may be coming to an end.

The speculation in EV and alternate energy related stocks may also be tempered. A De-"Vulcan"-isation of the market as we say here in the pub.

IPO's will find it tough going as well.

I'll be sticking by and large with good divi stocks for the next 12 months until the dust settles.

Except for any ASF Competitions of course.

gg

 

[Belli]

Never had a concern about dividend/distribution aspects. They fluctuate for sure but then it comes down to being able to budget. With these plus a handful of the older larger LICs I have few worries.

Vanguard Australian Shares Index ETF (ASX:VAS)

Vanguard Australian Shares Index ETF (ASX:VAS) share price, ETF research, charts, announcements, dividends, Exchanged Trade Funds at InvestSMART.com.au

www.investsmart.com.au

Vanguard MSCI Index International Shares ETF (ASX:VGS)

Vanguard MSCI Index International Shares ETF (ASX:VGS) share price, ETF research, charts, announcements, dividends, Exchanged Trade Funds at InvestSMART.com.au

www.investsmart.com.au

Why the provides distributions before November 2014 when VGS was first listed is beyond me.

 

[Belli]

If I was an avid index hound this would be the index for me I suppose.

 

[divs4ever]

i guess my username tells you my preference ( wink )

but my goal is a dividend income stream for life ( if possible ) now a GROWING income stream would be nice but not always possible every year ( 2020 certainly had some interesting moments in that regard )

well, that capital growth looks nice BUT how does it look when
A. adjusted for CPI increases ( the politically acceptable inflation ) and
B. adjusted for real inflation ( the reduction in spending power the masses perceive )

so yes i prefer the dividends to help resist inflation ,( no matter how it is measured )

there are several stocks i DRP i was very keen on signing up for those plans from 2011 to 2016 when i was working , since i am no longer working i am less tempted to sign up for DRPs now