Wall Street has always insisted that investors must choose sides.
You can own growth stocks, which supposedly offer exciting capital gains but little current income. You can own dividend stocks, which provide income but are often dismissed as slow, boring businesses unlikely to produce spectacular long-term returns.
This is another artificial distinction that makes investing more complicated than it needs to be.
Some of the best long-term investments combine both characteristics. They grow earnings at an attractive rate, pay shareholders a meaningful dividend, and increase that dividend as the business becomes more profitable.
The real objective is not merely finding growth or income. We want to find growth and income at a price that leaves room for substantial future returns.
