03-07-2014, 03:07 PM
(03-07-2014, 01:26 PM)dividendventure Wrote: So, won't an index fund grow more per year than the average dividend stock (even including dividend re-investment)?
That really is the big question, and I think that you are right that there is not a clear-cut answer. As you hinted, depends on time frames, sectors, and whether income is important to you (either to spend or reinvest).
(03-07-2014, 01:41 PM)hendi_alex Wrote: I would also assume that smaller cap growth stocks would tend to out perform in that regard.
I think I recall reading that over the long haul small-cap indexes have outperformed broader indexes by a little bit. But that is not the same as individual stock-picking. I'd be wary of trying to predict small-cap winners and would probably stick with indexing there, for the most part.