Dividend vs Growth Stocks: How Much Risk Should You Take?

Рет қаралды 82,373

Күн бұрын

Should your portfolio be 100% Growth Stocks? 50% Growth Stocks? 0%? How about Dividend Stocks and Index Funds/ETFs? We discuss asset allocation today for younger, and older! WATCH NEXT: ► My $69,000 Dividend Portfolio REVEALED: • My $69,000 Dividend Po...
📌 Subscribe for Weekly Videos: bit.ly/humphcrew
► Get $10 of Free Stock of your choice on the Public Investing App ➭ pblc.co/humphrey
► Robinhood (get a free stock!) ➭ robinhood.c3me6x.net/qPyKY
► Get 2 Free Stocks on WeBull (valued up to $1850 when you deposit $100) ➭ a.webull.com/i/HumphreyYang
► Patreon + See What I Invest In ➭ / humphreytalks
► Coinbase (Get $10 in free Bitcoin) ➭ www.coinbase.com/join/yang_0wf
► Join the Discord Community ➭ / discord
Timestamps:
0:00 - Begin Here
0:30 - If You Had Invested in Tesla at the IPO...
1:32 - Dividend vs Growth Stocks
4:52 - How Much of Each Should You Have?
6:34 - If I were 18 Today
7:48 - My Ideal Holdings
8:30 - Three Things You Should Keep In Mind
Dividend and Growth stocks are just "stocks", or companies, that you can invest in. However, they're called "Dividend" stocks or "Growth" stocks because of their characteristics.
A company that pays dividends is typically more stable, has enough cashflow and cash on their balance sheet to pay out a certain percentage of their profits back to the shareholders (you for owning their stocks).
That's great and all, but dividend paying stocks are usually not known best for their appreciation of their underlying stock price.
You're mostly relying on the dividend as a source of passive income - and for that reason they're actually really great.
Some companies have been reliably paying a dividend for 50+ years now and when it comes to dependable income that you don't have to do anything for - that's perfect.
So now that we know the difference, well how much should we have allocated in our portfolio to each of these types of stocks?
There's no right answer when it comes to this, if you want to take on more risk, you're going to have more growth stocks, and if you want to be less risky, you'll want more investments like dividend stocks, ETFs, and Index Funds.
But let's actually talk about risk because, knowing your risk tolerance will better guide your own investment decisions.
First, the younger you are, generally - the more risk you can take. When you're younger, you want to be taking on more risk, that's because the younger you are - the more time you have ahead of you, which means the more opportunities you have ahead of you to make and earn income.
You also have more time to allow your investments to compound, so you can take positions in your portfolio that you know will compound and grow over time, and pick certain spots with the rest of your portfolio in order to grow it faster.
In general, now, this is very general, younger people should have a higher percentage of growth stocks in their portfolio compared to people closer to retirement.
So let's flip that, pretend you're 55 years old, and you want to retire in the next 10 years. Your portfolio could be comprised of mostly passive investments like safer index funds/etfs/dividend paying stocks, and a small % can be allocated to more growth stock or speculative plays.
So, what should you do, as an investor?
First, understand your risk profile - if you're riskier for your age, you can take on more risk and choose to select a higher percentage of growth stocks in your portfolio.
Second, make a hypothesis about where the market is going. Right now we're in a bull market that's lasted quite a long time, so dividend stocks tend to perform worse than growth stocks, but if we were in a bear market - growth stocks lose their value quickly versus dividend stocks are more stable.
Third, always diversify. This is your best protection against market forces and particular investments that do poorly.
📧 Contact: If you have a question feel free to leave me a comment on my videos or follow me on IG and send me a DM! If you have a business related inquiry, please then send me an email at humphreytalks@gmail.com
Disclaimer: I am not a financial advisor, any investment commentary are my opinions only. Some of the products and services that appear on this channel are from companies that I have an affiliate relationship with, such as Robinhood, for which I recieve a small percentage made via those links, but it doesn’t cost you anything extra!
📷 Instagram: / humphreytalks
📲 Tik Tok: / humphreytalks
🐪 My FREE Newsletter ➭ humpdays.substack.com

Пікірлер: 141

@humphrey 3 жыл бұрын

I will NEVER ask you for your info or leave my phone number. Be aware of scammers. Also scroll back UP and tap the LIKE! Thank you SO much.

@daddyland 3 жыл бұрын

I've watched a few other financial youtubers and in their comment section a lot of times there are scammers/bots asking for details but it seems they can't be blocked or reporting them doesn't do anything. Hopefully you do not get overfilled with them in your comment section... only noticed one or two comments in your videos so far.

@wobblysauce 3 жыл бұрын

@@daddyland There were 5 seen so far on this channel.

@adamwhite202 2 жыл бұрын

Is company like EA game stock growth or dividend stock srry new

@thisismyrealname8315 5 ай бұрын

How do you meet girls, then?

@cpz1019 3 жыл бұрын

Makes me upset every time I think about how I could’ve started learning about investing when I was 18, not 30

@MysticSunSeed 3 жыл бұрын

Don't be some people never learn or invest. Anytime you start you'll be ahead.

@DividendBull 3 жыл бұрын

Don't spend time getting upset about the past, most people don't have their act together and never will. You've got plenty of time to go, just get started as soon as you can.

@etherwing 3 жыл бұрын

I'm just learning and I'm 39, so you're ahead of me!

@bradleydyess6541 3 жыл бұрын

You've still got a lot of time left. Plant the tree now and you'll have peaches before you know it.

@kcarch25unkown27 3 жыл бұрын

Then make sure your kids know

@mrc2176 2 жыл бұрын

I subscribe to the "I'm scared if losing money" belief, and as such. I'm 33% VOO and 67% VUG/VGT. I don't feel comfortable picking my own stocks, instead I just simply investing in a tech and growth stock etf

@livinthedream4479 4 ай бұрын

I feel like VTI is better than voo.

@jfizzle301 3 жыл бұрын

Your videos are so helpful. You explain things so well! Thank you! Subscribed! 👍🏼

@ThatFinanceShow 3 жыл бұрын

Good vid, love this topic. The answer is so different for everyone. Has to be personal.

@kairace Жыл бұрын

Great video🤙🏼 Really cleared things up for me bloody hell

@mirenny7661 3 жыл бұрын

hey!! can you do a video explaining the Morning star style box?? your videos are always so simple to understand and i can't seem to find a video clear enough explaining it?? Thanks!!

@Jake51500 Жыл бұрын

Great video as always...still on the fence between growth & passive strategies...I have a substantial amount in both...but I may just take the dividends this month and put them on my mortgage...thoughts?

@princesscacpal7618 3 жыл бұрын

can you do video on real estate investment? explaining REITS and comparing real estate investing vs investing in stocks. do you also have any book recommendations for beginners?

@danielreyes7867 3 жыл бұрын

Are there any ETFs you would recommend that are known for paying out dividends?

@JK-zt4ym 3 жыл бұрын

Just a note for anyone interested. If you're looking at dividend stocks, the last thing you should look at is the dividend yield. You should focus on the dividend growth. If the dividend isn't growing don't buy it.

@yiannisv3573 2 жыл бұрын

can you elaborate please?

@JK-zt4ym 2 жыл бұрын

@@yiannisv3573 when you look at high yield companies, you are often looking at companies that have unsound fundamentals and they can be borrowing money just to pay the dividend. The dividend can also be flat (not growing) which is problematic in the long run. You want a company that has a reasonable payout ratio and most importantly, a dividend that grows every year. Take 2 imaginary companies. Company A pays a 5.5% dividend and Company B pays 2.8% but the dividend is growing at 10% YOY. It won't take long for Company B to surpass Company A in income and the growing dividend will force the price to appreciate at the same time.

@SidDesai115 Жыл бұрын

@@JK-zt4ym Is there a metric that can track the growth of a dividend over the years

@KGood13 3 жыл бұрын

Enjoying your content! How do I research what stocks to invest in? To gain information aside from just investing in large corporations like Apple, Google, etc. it seems like people have info on smaller businesses and I just don’t know where to begin. Thanks!

@josephjones836 3 жыл бұрын

Growth funds and only reallocate into dividend when u need stability.

@mwu0088 3 жыл бұрын

Great video!

@aretha6360 3 жыл бұрын

Dear Humphrey, could you please do a video about opening up a savings account in a bank vs investing in stocks. Do you even have a savings account?

@thegaminghole1358 2 жыл бұрын

Get a growth ETF and a high dividend ETF, dont gamble on individual stocks unless you can afford to take big losses. (also get an international etf like VXUS)

@Gigi-fc6lj Жыл бұрын

Thanks

@alissonsantos6382 2 жыл бұрын

The Indiana Jones part with the Market crashing on his head made me laugh. Very nice video Humphrey. Very educative.

@ofiasdhfasoidfujasdfoh Жыл бұрын

when you say growth stocks, do you mean only individual stocks? or does it include growth ETFs?

@rachel.schmidt 3 жыл бұрын

Thanks for explaining everything is clearly! 👏👏 your channel is so helpful!

@humphrey 3 жыл бұрын

Glad you think so! Wooo!!

@doraortega8104 3 жыл бұрын

Hello, I'm newish to your channel, do you have anything on Robinhood?

@daddyland 3 жыл бұрын

I've started to get back into checking the stocks every morning again so I think I'll do what you said and add some growth stocks. Thanks for another great educational video!

@humphrey 3 жыл бұрын

ily daddyland

@arthurgeorge808 6 ай бұрын

Buy early and Hold till your old Your growth stocks should grow and so does dividend earnings along with it But it should be a fun hobby, not a life or death decision

@masiahmad3662 3 жыл бұрын

Another excellent content to share with others, especially new ones. Superb Humphrey!!

@humphrey 3 жыл бұрын

Many thanks Masi, you are the best

@yiannisv3573 2 жыл бұрын

But what is the ROI of dividend investing?

@HichigoShirosaki1 Ай бұрын

I diversify across both growth and dividend stocks through etfs. I keep a target of 2% dividends average for my entire portfolio. I also have some individual stocks and in those I am very particular about having to see a consitent track record of price appreciation over time but i won't take any growth stock that cannor demonstrate it produces better returns than a dividend stock and it has to have at least some dividends. My reason for taking this moderate stance is because due to personal reasons, I may not be able to work until full retirement age and so I need stability. I need protection from down markets while also getting decent growth. I consider myself more of a moderate balanced invester who hedges against all scenarios.

@kornshim 3 жыл бұрын

been seeing you a lot on Tiktok, glad I came across your youtube channel! Subscribed!

@humphrey 3 жыл бұрын

Ichigo!! Appreciate it brotha 👊

@stephensours8938 3 жыл бұрын

Do you have a video on rolling your 401k to a Roth IRA?

@ac-dy7yi 3 жыл бұрын

Would you recommend investing in the ARK etfs with your Roth IRA even though the expense ratios are high?

@amirk.2148 3 жыл бұрын

would you consider ETFs in your growth or dividend group? let say a vanguard ETF

@burkles4456 2 жыл бұрын

ETFs are great for those who can’t,or don’t want to, take the time to pick a bunch of individual stocks to achieve the same diversification that an etf can bring. Of course you would make more if you did end up picking one of those golden companies.

@virus5488 3 жыл бұрын

Hey, Humphrey! Can you do a video on trading after-hours? I've noticed there seems to be a lot of movement after-hours.

@bradhaaf4749 2 жыл бұрын

Seems to me for younger people you'd want to go with dividends Because that will add on to your Annual income allowing you to qualify for higher priced real estate which you could then pay for with your dividends... Is this a strategy ?

@laportafrank 11 ай бұрын

Taking early notes from Warren as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.

@flemmingbrooke 11 ай бұрын

You’re right! The current market might give opportunities to maximize profit, but in order to execute such effective transactions, you must be a skilled practitioner.

@GeorgeNN 11 ай бұрын

A lot of folks downplay the role of advisors until being burnt by their own emotions. I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.

@laportafrank 11 ай бұрын

How do I find this Lady?

@GeorgeNN 11 ай бұрын

I started out with an FA named Nicole Desiree Simon Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI.

@laportafrank 11 ай бұрын

Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly scheduling a call.

@danfor1000 3 жыл бұрын

How do you identify paying dividend stocks?

@humphrey 3 жыл бұрын

You can use yahoo finance to look up their dividend yield. If it pays a dividend it’ll have a yield %

@hermitcrypto2787 2 жыл бұрын

This question though; really lol

@reneegaytan9020 3 жыл бұрын

How can I become a patrion supporter?

@ivantan3554 3 жыл бұрын

As a new investor at 25, I've saved a good sum of money as my emergency funds. Im planning to stop saving and use the money intended as savings to invest instead. Would you recommend to stop saving in all for now and just invest or continue saving a little less than before?

@deadcell1 2 жыл бұрын

I assume you meant using your emergency funds for investment opportunities. I highly advise against that. Your emergency savings is basically an insurance policy against job loss. I'll keep the emergency fund and just DCA into either growth stocks or bitcoin (since these assets grow at a fast rate than dividends stocks) then every 5 years roll the profits over into dividends stocks to produce additional cash flow.

@X11CHASE 2 жыл бұрын

No need to add more savings then it takes to mitigate an emergency. No point at all. You can always liquidate some investments if you became desperate for whatever reason. Better to have some safer investments for emergencies. In cash, you enough need enough for living expenses and any immediate emergency that might come up. Other than that you could easily liquidate stocks in 2 business days so why risk keeping more cash than you need. Inflation is a bitch

@ggbogo935 7 ай бұрын

I'd be putting money away for a home if you haven't already.

@andresbenitez9449 3 жыл бұрын

You always post videos answering the questions I have floating around in my mind... how 😳

@humphrey 3 жыл бұрын

ALGORITHM!

@jrmorales822 3 жыл бұрын

Been here for 8months now. Appreciate the insights and advice! And the transparency you have with your portfolios and such 💯🙌🏽keep it up!

@humphrey 3 жыл бұрын

I appreciate that! I'm going to continue to be transparent. Thanks so much Ezekiel for being here that long.

@jrmorales822 3 жыл бұрын

@@humphrey you have no idea how much you and graham have educated me. I turned 21 last week and It’s been nice seeing my finances trending upward “slowly but surely...progress is progress” since learning more about the context you display!

@user-cr8wo6vi8w 3 жыл бұрын

@@humphrey if u buy a stock on market can u sell it on a limit ?

@humphrey 3 жыл бұрын

@@user-cr8wo6vi8w Yeah you can always set a limmit sell

@user-cr8wo6vi8w 3 жыл бұрын

@@humphrey appreciate it !!! from Vancouver Bc 🇨🇦

@nicholasjamesrabanalessere1763 3 жыл бұрын

10/10 vid humphrey!

@humphrey 3 жыл бұрын

yesssir ty ty

@nathantournahu3955 3 жыл бұрын

I'm late to the game I turn 39 next week and I have just started investing on my own outside of my 401k, what stocks would you recommend for somebody my age?

@DividendBull 3 жыл бұрын

If I were you I'd look into Realty Income (ticker symbol O). It's a stock that pays monthly dividends and has been increasing its dividend for decades.

@deadcell1 2 жыл бұрын

@Teenage Investor you should throw some bitcoin in there for growth.

@robert-tm3qz 2 жыл бұрын

Would it be better to have one portfolio for dividends and one for growth and can they all be in just one portfolio?

@ggbogo935 7 ай бұрын

keep it in the same portfolio for ease of maintenance

@selenasaenz6127 3 жыл бұрын

Random, but I love your videos, and I would be very interested to hear your thoughts on the Robinhood lawsuit regarding Alex Kearn's suicide.

@mikea8225 3 жыл бұрын

Which is better to invest in cashapp or robinhood. I’m a new investor

@dsanti4069 3 жыл бұрын

Robinhood

@StevenTheGreat_ 2 жыл бұрын

Cash app? Lmfao that’s not a stock broker dude.

@ofiasdhfasoidfujasdfoh Жыл бұрын

so Growth ETFs doesn't count as growth?

@cocoabiscuits 3 жыл бұрын

Very helpful. I just started investing at the age of 43 and dividend investments is more my speed.

@humphrey 3 жыл бұрын

awesome to hear :)

@jackd9721 3 жыл бұрын

Great video Humphrey. Very informative. Do you have any tips on how to grow as a brand new KZfaq channel. I have made a channel called Making Tax Simple and am aiming to educate people about tax

@Xoffalis 3 жыл бұрын

Are Dividend and Value stocks synonymous? Or are there important differences as well?

@humphrey 3 жыл бұрын

There are differences. Value investing is more geared toward finding undervalued companies and investing in them knowing that they’ll regress to the “mean” which is hopefully higher than what you invested in.

@Celty.Sturluson 3 жыл бұрын

Should young investors be concerned of a potential market crash or correction?

@humphrey 3 жыл бұрын

Always a possibility but if so it would affect anyone invested into the market. The younger the better since you’ll have more time

@lukeboulter2221 3 жыл бұрын

Hey I’m 21 and I’ve done research here and there on index funds & ETFs for the last couple years - just always been afraid to put some skin in the game. Your videos are awesome. Clean and to the point with accurate information - I also appreciate that you speak to your situation/ what you have learned. Thank you for your help, you’ve given me more confidence in taking the first step! Cheers!

@cathleensmith4717 3 жыл бұрын

Get in before the game is over.

@bethalunerstar4635 3 жыл бұрын

Hey Humphrey! 👋🏼

@humphrey 3 жыл бұрын

Hi! Thanks for being here

@Drone_PilotSG Жыл бұрын

Who ever said dividend stocks had NO growth potential?

@basha0810 3 жыл бұрын

So here's the thing. I'm with Ally Invest. When I get dividends on some of my stocks, they reinvest them by purchasing more stock. I love that. I still have to pay taxes since dividends are considered income but the money is re-invested, if that makes sense. Winning. 😜 Glad I stumbled onto you Humphrey! 👍💲

@humphrey 3 жыл бұрын

Yup that is correct. I appreciate your comment!

@dentistt248 3 жыл бұрын

For dividend stocks, do you still have to pay taxes if you set it to automatically re-invest?

@SpiritWolf209 2 жыл бұрын

Yes. Unless it is in a tax advantaged account, you will have to pay taxes on dividends that are automatically reinvested.

@thedarshin 3 жыл бұрын

Hey Humphrey, My dad and I talk about this every weekend and we are on the opposite side of your advice. He is 56 with less money then the average person his age and is SUPER into growth over dividends 95/5 if I had to guess as he is “trying to make up for lost time”. As for me, I am really putting 85% of my money into the dividend stocks (high quality of course) and only have Tesla and Nio as my growth stocks. My thought after watching the video is more along the lines of... I wonder if the advice needs to be more like “your investing strategy needs to be based on how much longer you think you will be working vs how old you are.” I am only 26 but I don’t want to take risk like a 26 year old since I only want to work another 15-20 years. Just a thought . Great video!

@humphrey 3 жыл бұрын

Troy. Really good insight. Never thought of it that way, also probably depends on what your goals are and your current balance is. Really smart of your dad and good that you guys have these conversations.

@angelalopez2003 3 жыл бұрын

I think you're on to something! I am almost the same age as your dad (55) and trying to figure out my next investment moves. I'm torn between the two though...should I be concentrating on growth over dividend? Or, do I need to concentrate on long-run, albeit, slower returns?

@stephenboling2313 3 жыл бұрын

Don't stocks expire? Like if I buy a dividend stock won't I have to rebuy it later?

@DividendBull 3 жыл бұрын

No stocks don't expire, once you own stock in a company you technically own a small piece of that company. You can't lose it unless the company closes.