📊 Dividend vs Growth Stock Analysis
Mathematical comparison: Dividend-paying stock vs High-growth stock over 30 years
⚙️ Assumptions
💰 Company A Profile
Dividend-paying stock with moderate growth
Examples: Coca-Cola, Procter & Gamble, Johnson & Johnson
🚀 Company B Profile
High-growth stock, no dividends, reinvests all profits
Examples: Amazon (historical), Tesla, Nvidia (early years)
📈 Results Over Time
| Years | Company A Value | A CAGR % | Company B Value | B CAGR % | Winner |
|---|
📊 Portfolio Growth Over 30 Years
📊 Side-by-Side Comparison
🎯 Key Insights
💰 Company A (Dividend Stock)
- ✓ Provides regular income through dividends
- ✓ Lower volatility, more stable
- ✓ Better for income-focused investors
- ✓ Tax implications on dividend income
- ✓ 30-year value: $0
🚀 Company B (Growth Stock)
- ✓ Higher potential returns through price appreciation
- ✓ More volatile, higher risk
- ✓ Better for long-term capital growth
- ✓ Tax-deferred until you sell
- ✓ 30-year value: $0
🏆 Final Verdict
However, remember that historical high-growth rates (20%+) are extremely difficult to sustain for 30 years. Most companies eventually mature and slow down. Diversification is key! 🎯
