An interesting debate that I often come across on Seeking Alpha is the age-old yield vs. growth debate. Is it better to buy stocks that have a higher yield to “lock in” the income or to buy companies that pay little or no dividend but are growing more quickly?
I wrote a two part series on the topic that I believe did a good job of showing the benefits of the two methods by setting up spreadsheet matrices comparing different growth rates and initial yields across varying investment periods.
High Yield Or High Growth: Which Belongs In Your Portfolio?
High Yield Or High Growth? Real World Vs. ‘The Matrix’
Which do you prefer? The bird in your hand, or the two in the bush?