How to balance dividend vs. growth early in life


I’ve seen several posts discussing this but they always leave out the consideration of capital gains tax.

I’m 28 with 35K invested in my non retirement accounts mostly in dividend paying stocks on Drip I plan to keep my entire life and only cash out the future dividends. Reading several posts I’m seeing a common trend of advice for younger investors to focus on growth and transition toward dividends later in life stating that I can cash that out and buy more dividend stocks than if I invested in dividends to begin with. I’m wondering how true that statement is after factoring in capital gains tax on the growth vs. starting divs early on and only paying taxes on my dividends.


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