HOW TO INVEST IN THIS STOCK CRASH? | Dividend-Growth Or Value-Growth Investing?

Hey Everyone!

With the stock markets taking a steep tumble this week, more people are thinking about buying in to the market and taking advantage of discount prices.

I wanted to open up the discussion a bit more by highlighting the difference between dividend-growth and value-growth companies so that everyone can decide what works best for them and not what’s on YouTube.

I have done a video on it here https://youtu.be/jUlFMWrYc6A and would really appreciate if you could like and subscribe if you find it useful as it did take me quite a long time to make haha.

I hope you find the information useful and would love to start a discussion around it!

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Good video. I’m actually doing both.

Not too bad! I’m thinking of adding a few dividend-growth stocks too. What ones did you add to your portfolio?

GSK, Greggs, FTSE 100, Aviva, Vodafone are all good dividend growth stock. I’m paying more attention to food, drugs and travel when the market reopens. What did you add to your portfolio?

You might mistake dividend stocks with dividend growth stocks. High dividend does not mean it will grow over time. Rather the contrary. Vodafone for example has had a dividend growth for a couple of years now, but basically halfed it in 2019 - which is definitely not a dividend growth stock.
They also often payed out more than 90% of their profits in dividends. That is insane and shows that there is no room for raises if Vodafone does not grow rapidly - which it will most certainly not.

Not buying anything yet. Still further drops to come. Then it’ll be a buyers market. You could buy both FTSEs and S&P and make a right killing when markets stabilise. With very little effort.

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I hear you but disagree. Firstly you mention younger investors but I’m not sure what age has to do with anything. I presume you mean less experienced investors.

Secondly investing in 3 indices (I quoted 3 you quoted 1) has far less risk than choosing individual stocks.

Finally you mentioned a couple of sectors and how they might favour in a future market. The composite of the indices have always changed as consumer habits and other factors change. That will be no different going forward. Who knows, sustainable energy companies might find they grow at an incredible rate that their market caps see them in the FTSEs for example.

What I will concede is the phrase “killing”. I would class 30% growth as a killing and I think that will come from the lows in this dip. So your right ill change my wording from making a right killing to “a lovely profit” [once again an ambiguous phrase].

P. S I don’t mind your rant. I’m quite partial to one now and again :+1:

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Greggs was the underdog when I saw their share price growth. The power of sausage rolls!

I’ve been adding to my positions in Rightmove, Autotrader and a few others. They’ve got real strong moats and have annually increased their EPS

Thank you Angy! Same here! At this point, I would say I’m buying 80% value-growth and 20% dividend-growth stocks. Might change the ratio depending on how next week goes.

Or you think the same that everyone else thinks and it will be the exact opposite :grin:

100% this. Me every time :joy::joy::joy::point_up_2::point_up_2::point_up_2:

A bit like when Goldmans are telling everyone to buy and they are selling everything they can.

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And every time I say I won’t make that mistake again and poof, another session of sheeping the advice of everyone :rofl: :rofl: :rofl:

Both.

ESPECIALLY in a stock crash.

Value for Dividends now. Growth for future Capital Gains. Strategically placed in iSAs and SIPPs - both for long term and short term.

For example. I’ve some cheapy cheerfull high dividend stocks that aren’t growing, but creaming off their cash dividend (BAT, NewRiver REIT) …and on the flipside i’ve some long-term high growth companies that pay f*ckall now but will grow in the future - AAPL, TESLA …along with a few dividend aristorcrats (ULVR, SHELL, ABBVIE) and good dividend top-up payers like AT&T and HSBA.

Make sure you always have income coming in now and growth in the future so that income will remain coming in !

Mix it up strategically to make your own dynamic investment soup.

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Very creative.

Reckitt Ben-keeza a true dividend champion.

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I’m just going to keep investing what I can, when I can. It’s about time in the market, not timing the market.

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Question do we also get dividends on fractional shares ?

^Just watched the video, thanks for the super easy to understand content! I’ve subscribed to the channel, looking forward to more :muscle:

If I lose all the value of my shares or total investment.

I bought 4700+ shares in UKOG valued at £10.00. Each individual share value is £0.00.
If the shares keep declining and the total investment of £10.00 goes to £0.00. What happens?

Yes you do. I havent found an easy way to work it out yet, but you get a fraction of the dividend relative to the fraction of the share you hold.

Game over you lose, enter 50p to play.