If individuals have 25+ years before retirement and don't need/want the income until retirement, why not seek out growth stocks which 'may' provide a higher return over the long haul? Yes, dividends provide a slow and constant return (say 4% per year), but how are they better than growth stocks in the long run?
I could understand if you grew your money with growth stocks and then place them in dividend stocks/funds to have a constant return, but the other way around seems like it would take a longer time.
Thoughts?
Thanks.
I could understand if you grew your money with growth stocks and then place them in dividend stocks/funds to have a constant return, but the other way around seems like it would take a longer time.
Thoughts?
Thanks.