Dividend Income or Capital Appreciation — Which Matters More?

  • Weekly Giveaway for our active users. N50,000 per Week. Do you want to contribute to this community? We are looking for contribution? What is hot right now? Sign up and get in on the ground floor of the newest, fastest growing Nigerian forum!
igwe emmanuel said:
A question has been coming to mind lately while observing different investment choices on the NGX.
When stocks are selected, is the decision mostly influenced by the expectation of steady dividend income, the potential for capital appreciation, or a balance of both?
For some investors, consistent dividend payments appear to be the main attraction, especially with certain banking and blue-chip stocks. Even at the beginning of my own investing journey, I fell into this as well — focusing mainly on companies with strong dividend history and, in the process, missing out on a number of growth stocks.
For others, the focus seems to be more on long-term price growth and market momentum.
It would be interesting to know which of these approaches is generally preferred here and what usually drives that choice.
Click to expand...
For me, I will prefer the both cause dividend payout might not really beat inflation rate but capital appreciation will. So the both is cool for me
 
igwe emmanuel said:
A question has been coming to mind lately while observing different investment choices on the NGX.
When stocks are selected, is the decision mostly influenced by the expectation of steady dividend income, the potential for capital appreciation, or a balance of both?
For some investors, consistent dividend payments appear to be the main attraction, especially with certain banking and blue-chip stocks. Even at the beginning of my own investing journey, I fell into this as well — focusing mainly on companies with strong dividend history and, in the process, missing out on a number of growth stocks.
For others, the focus seems to be more on long-term price growth and market momentum.
It would be interesting to know which of these approaches is generally preferred here and what usually drives that choice.
Click to expand...
I think its best to Balance both. Aim for capital appreciation and dividend. But don't ignore the first. Some appreciation will give you what dividend can't offer
 
Tobcom said:
It all depends on you; the fund available for investment and strategies you are deploying. Dividends make more sense from stocks that you have big volumes and you can acquire more units. For me, at the initial stage of my investment journey, I focus more on penny stock that gives me huge capital appreciation and I later sell part of them to acquired Dividend stocks.
Click to expand...
I love this strategy. Penny stocks though risky can be highly rewarding. Although, all investment have a level of risk
 
Ugobeauty said:
It's a mixture of both, whether dividend stocks or growth stocks. One good thing about growth stocks is no matter the little amount invested you get to gradually watch it grow until it reaches its full potential. A person can only enjoy dividend stock or think of reinvesting the dividend when the person has purchased a reasonable unit or quantity of the stock. So many people may not have such fund at first,such a person will end up investing in growth stocks. I started investing with as low as five thousand naira, when I saw the unit purchased then, I began to understand that investing in stocks is a game of number. Now I prefer to go for stocks that are referred to as undervalued so that I can see it grow.
Click to expand...
Amazing
 
igwe emmanuel said:
That’s very relatable. I also started investing with a small amount in the beginning, but my focus then was mostly on dividend stocks.
At the time, I was mainly looking at companies with a strong dividend history because I was thinking more about the income side. But over time I began to see that growth and undervalued stocks also have an important role in building a portfolio.
Are there any undervalued stocks you’re currently watching or adding to your portfolio now?
Click to expand...
For me, TIP, Hmcall, the consumer goods too
 
You must log in or register to reply here.
Top Bottom
Back