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Their other posts in the index, biggest breakout first.
Dividend stocks versus growth stocks Which one is actually better This is my part 2 of my investing breakdown series Here's the difference A dividend stock pays you cash for just holding it A growth stock pays you nothing and then reinvests everything back into the company So it sounds like dividends win right Free cash for doing absolutely nothing But here's the thing Every dividend payment is that it didn't reinvest back into growing the business Amazon and Google paid zero dividends for most of their existence Let's take an example comparing the two most popular ETFs VUG as the growth ETF and SCHD as the dividend ETF Dividend Yield 0.39% 3.23% VUG barely pays a dividend and SCHD pays 3% Over the last five year SCHD returned about 52% including dividends The growth ETF returned about 84% And here's another disadvantage that SCHD dividend payment gets taxed as income every single year even if you reinvest it VUG barely pays anything so almost none of that return gets taxed until you actually sell it People chasing the highest paying dividend ETF or stock is a big mistake that I see so common If you want more in depth breakdowns like this where I actually walk you through how to analyze and invest step by step come join my Wealth Engine community Comment the word ENGINE and I'll send you a link to join I just launched it So the first 200 people will get locked in Founders pricing permanently