03-07-2014, 01:26 PM
This matter is one of the things I still didn't fully settle on. What would be a better strategy on average: Start investing early on dividend stocks or invest in index funds and later on move the capital to dividend payment stocks?
Essentially, in the accumulation phase where you re-invest all the dividends, there is no actual income. So, all that matters is the capital growth you achieve. So, won't an index fund grow more per year than the average dividend stock (even including dividend re-investment) ?
I can't seem to find a concrete answer to this question, which might mean there isn't one and depending on the time frame or on the dividend stocks picked, the results can swing either way.
Essentially, in the accumulation phase where you re-invest all the dividends, there is no actual income. So, all that matters is the capital growth you achieve. So, won't an index fund grow more per year than the average dividend stock (even including dividend re-investment) ?
I can't seem to find a concrete answer to this question, which might mean there isn't one and depending on the time frame or on the dividend stocks picked, the results can swing either way.
My blog with what I consider the best dividend stocks