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REDDIT

In investing, what are the advantages and disadvantages of growth vs. dividend investing?

D
Sep 30, 2025 · 00:48

If you've ever been to r/Bogleheads or r/dividends, you've seen two ends of a spectrum where both are convinced the other side are idiots. Personally, I lean in the Boglehead direction, but I'd really like to expand my knowledge and get a better idea of the overall pros and cons of both sides.

I do know that the general argument for growth over dividends is that dividends are immediately taxed and you do not control when that happens, whereas with selling appreciated stock, you have (some) control over the tax implications.

On the other hand, with dividends, I understand that there is a certain advantage to reinvesting dividends and picking up stock at a potentially lower price during lean times.

That's about the extent of my knowledge though. So - please educate me on what you gain and lose by investing in, say, VOO instead of SCHD, or vice versa!