Yield vs Growth for Youth

[Kerim]

Great thread! I completely agree with the "balanced" approach. The high-yielders constitute the "bird in the hand" part of your portfolio, while the faster-growers are the "two in the bush."

I personally have a bias toward stocks with a higher initial yield, so long as I believe that it can be sustained for the long term. I guess I am just skeptical in most cases that the fast-growers are likely to maintain the pace to actually reach the cross-over point, where their dividends surpass those with a higher initial yield. But it is just that -- a bias. I have some of each in my portfolio.

Best of luck to you, notexactly. I sure wish I had started when I was your age. I suspect your early start and discipline will play a larger role in meeting your goals than your mix of yields. But I love that you are considering all of the angles!

[Roadmap2Retire]

Agreed with most comments here. I look at them as a spectrum and want to own something in various ranges. Low-yield-high-growth, medium-yield-medium-growth and high-yield-low-growth if you will. The low-yield-high-growth-dividend stocks will pay off very well in the future but assuming that you have picked a good candidate that can keep growing and keep raising dividends for years/decades to come. I would complement those with income now vs. income later.