Dividend Stocks vs. Non-Dividend Stocks Which Choice Is Good? ✨

Invest directly! Two types of stocks. How different? Who is it for?

On foot in the stock market world, one of the first questions that many wondered was, "Which one should choose a dividend stock or a non-dividend stock?"

Today, we're going to understand the basics and look at the pros and cons of both types of stocks so that you can choose which is the most "investment mania" for us.

What is 🔎 "dividend" and where does it come from?

Stock is the acquisition of a particular entity. We are also a partner in it. This means that we have the right to own part of the company.

Dividend is therefore a share of the net profit that the company pays back to the shareholders as a proportion of the shares we hold. On the other hand, if the company suffers a loss or a targeted profit, the shareholders will also be affected by it. It may not receive a dividend or a decrease in the share value.

So why are there companies that pay and don't pay?

Dividend stocks are stocks of companies that have a stable business, have good cash flow, and often have slow but consistent growth.

✅ The advantage of dividend stocks is that cash flow returns consistently, a "regular income" that encourages investment, and also reduces market price risk, because even if the stock price does not rise, we still get a dividend to compensate.

❌, there is a precaution: the matter of withholding tax, because every dividend is always taxed at 10% (in Thailand). Foreign countries depend on the policy of the country. This reduces the net return you have in part. Compared to stocks that do not pay dividends in the long run, unpaid stocks are better in return.

Non-dividend stocks will focus on profiting from growth.

Non-dividend stocks are stocks of companies that are in a high growth, innovation and market expansion phase. These companies will choose to reinvest all their profits instead of paying back to investors to make the business grow faster.

✅ The advantages of non-dividend stocks. The stock price has a very high growth opportunity. If you choose correctly, there is a huge profitability from the price difference. Don't worry about the dividend tax, but it must be paid when you sell, but overall it is considered less than the tax on the stock that pays the dividend.

❌, there is a precaution: the risk of a price crisis. When the time comes when you want to spend money, it may be after retirement, want to buy a house or get married. And if there is an economic crisis or bad news, it can cause a serious fall in the stock price, causing you not to dare to sell for fear of losses, causing you to miss the planned use of money. There is a high risk. If the business is not as expected, or the economic trend changes, the price falls easily.

Which one suits who? Choose your own "financial insanity."

1. 🧓 Dividend Stocks (Fits People Who Want Passive Income / Retirement Money) These types of stocks are suitable for people of retirement or near retirement who need annual cash flow to spend their living or investors who don't like high risk, focus on stability, have consistent income.

2. 🏃 Non-Dividend Stocks (Fits People Who Need Growth (Price Growth) / Generation Age) This type of stock is suitable for young or building-up age people with long investment periods and high risk exposure. Focus on Compound Growth to Long-Term Financial Goals.

The best answer is that there are no best stocks, only those that are "right for us, right for our goals and right for our age." Everything should be based on a balanced, rational and self-effective management.

# Dividend stock # Growth stocks # Investment # Rookie learning to invest # Personal finance