When it comes to investing in stocks, I would think that majority of investors are looking to fulfil two main objectives: Buy stock and sell it at a higher price for capital gains Buy stock for the dividends yield to create a source of investment income. Needless to say, there are some stocks that can fulfil both objectives up to a point. However, most of the stocks can be classified into three main categories: dividend, value stocks and growth stocks. If I would describe it, these categories of stocks are like different types of fire.

Source: Spongebob Squarepants | GiphyFor dividend stocks, what you get is a strong steady fire, as you are investing in mature companies that provide you with a stable source of dividends. P.S. Dividend stocks are also known as income stocks. For value stocks, you are getting a smouldering fire,

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