3 Investing Strategies Compared: GROWTH vs INCOME vs DIVIDEND GROWTH | PROS & CONS Explained

[@divinethreadsltd.3588]

This is solid. I earn passively investing in dividend paying stocks a beginner with help of an excellent broker & now I've reached my goal of over 1 million dollar value. I have a question: What do think about Brompton PWI split stock tho ?

[@PassiveIncomeInvesting]

well i own it :) watch me discuss all my holdings in my monthly portfolio unveil videos! new one Sunday

[@beckyanderson4971]

Hello Divine, I’ve the money to completely invest now but I dont know how to start. How can I reach your broker to help me build a portfolio?

[@divinethreadsltd.3588]

@@beckyanderson4971 Hi, Right of you to seek help If you don’t think you want to manage your own portfolio, he is known as Dodai Neil. Research him & reach him from his webpage.

[@d.a3474]

@@divinethreadsltd.3588 👍👍I've a friend from Dublin who told me of her awesome investment she set up with a smart man who just doubled her 50k portfolio managing it and it's this same man Dodai Neil. Passive income is the key to financial freedom.

[@nienjuanate6410]

Great content - I just started doing the income/DRIP strat in June; My wife snickered at $1 a month now we are pushing $18 with JEPI/NUSI/QYLD/RYLD: - 9% DY and 17% growth. I also budgeted for $300 a month to create my own covered call high dividend "retirement" income strat for when i retire in a 5 years. I'm focusing on companies with DY over 3% that beat the SPY over the 5y and 1y charts. Then once i capture 100 i'll start covered calls and then try to get capital for selling puts. Right now ABR is my focus until i get 100 shares. You keep me motivated and sane when everyone gets on me for income investing vs growth in FANG stocks.

[@george1353]

So incredibly useful! Thank you for all you do, I've learned so much about investing from your channel! I gotta say I totally agree that income style investing is by far my favorite. Really a lot less stress, and you aren't too worried on red days. With growth, you wake up at 6 am and stare at your brokerage app hoping you see green! Wondering when you should sell, or buy, its very stressful... Who wants to live like that every day? Why make any money if all you're going to do is stress about stocks all day? Thanks for really opening my eyes to income investing.

[@PassiveIncomeInvesting]

My pleasure and thanks for the praise ! You seem to really like and understand the concept 👍😉

[@iskrazamalloa6171]

@george I was advice on a growth strategy as my amount of investment is 2k. So, will be a nightmare at some point?

[@capitalzgrowth2147]

I like a mix between income approach and buying dividend growth companies. I don't plan to use the money for at least another 7 years so I don't mind the diversification.

[@eliotness107]

@Lawrence Weston i love this portfolio, very nice

[@James_48]

@Lawrence Weston I’m pretty similar but have a little more weighting to the blue chip side. I have a few years to go before retiring and don’t want to rely on pure dividend payers that don’t do regular increases and/or incorporate a lot of Return of Capital in their dividends.

[@MrChepburn]

Great video and explanations - you can always play it multiple ways. My wife and I have 6 trading accounts - aggressive dividend income model in TFSAs - US market high income plus a little dividend growth in RRSPs - balanced growth plus income with some index funds in locked-in RRSPs. All inspired by Adrians advice and example models. And if you don't need to use all the income you can reinvest via DRIP - providing compound growth from your high income investments ( as Adrian states in this video ).

[@bryanspear6108]

Yes we hold all the split share funds in our TFSA. Lots of CC ETFs is one RRSP and Closed End ( EIT and CLM) in another RRSP

[@veggie-mannn]

Finally, the information I'm looking for! Thanks!

[@guerillatactix3834]

I do a mix of the 3. In my RRSP I am mainly focused on growth with VTI as I have to sell off a portion of my stocks each year when it turns into a RRIF . In my TFSA I mainly do dividend + income investing with VDY, HDIV, and HYLD ( I know its better in my RRSP but my RRSP is only companies bought in USD)

[@patrickbelanger6253]

The income strategy is a true revelation for me. My goal is now focusing increasing my positions in order to get a monthly income to become financially independent. It doesn't require that much for me (I can achieve my goal within 10 years).

[@PassiveIncomeInvesting]

It’s worth the sacrifice !

[@patrickbelanger6253]

@@PassiveIncomeInvesting And I see the results, and it's achieveable! I will do the sacrifice and exit from the rat race as soon as possible!

[@myuey.3183]

I totally agree with you, my thought is really same to yours!!❤ I'm dividend-growth investor😊 But after watching your interview video with JPM, I've decided to add JEPI into my Portfolio.

[@JohnnyMastro]

I love your videos man! Always explaining things so thoroughly and giving me new ideas every time

[@tiagogalvani1984]

Hey Adrian! Pretty good video!! Any Reits funds that you would suggest? Not just buying single ones.

[@PassiveIncomeInvesting]

Trying to keep up ! It’s impossible lol

[@PassiveIncomeInvesting]

Rs ! It’s all you need !

[@PassiveIncomeInvesting]

Yeah …

[@blanksy_-]

when to sell , when to buy ?? good points .. thats why i like income

[@blanksy_-]

@@user-gn7te9yw1g hacked

[@P1EX]

I ended up with 7 ETF using M1 so it self reinvest to entire portfolio. All self managed so I don’t got to worry about anything - some growth, some dividend focused to fuel the snowball

[@mur4506]

What 7 please. I have 7 too and would be interested in something I might have missed

[@NorthPoleInvesting]

Great video, it’s important for everyone to remember that every investor is gonna use a different strategy and they all can be done well

[@jumbothompson]

The beauty with dividend/ income investing is that it saves you a lot of energy that you can direct somewhere else. Buffett was great at stock picking for a number of reasons, one of them being is the fact that it was the only thing he ever did. Growth can be a good strategy during a market downturn, otherwise I prefer dividend paying stocks and indexes.

[@PassiveIncomeInvesting]

We’ll said ! I agree

[@beginner828]

So much knowledge in one video.. great man!!

[@beginner828]

I have reached just 17 Euro passive income per month so far.. I have some lumsum amount to invest.. I was thinking to put it in stoxx global select dividend 100 ucits etf. What is your opinion about this Etf? Its TR is .46.. which bit high. But for lumsum I thought it to be bit less Volatile..

[@krakhour2]

Right. Stick waht makes you comfortable. I hate growth stocks cause they sit for years and dont move. Cant take that

[@PassiveIncomeInvesting]

Same ! I just can’t stomach my money not making more money 💰

[@PardonMyPresence]

I really enjoy your channel. It's hard to find a really good and consistent investment channel that focuses on dividends but a Canadian one at that🔥🔥🔥🔥

[@piknik8230]

im not waiting until im 70 to enjoy my millions of $$. pii is wtg! 🎉

[@PassiveIncomeInvesting]

smart

[@loselbs1]

Brilliant explanations, Adrian! Very concise and clear and makes perfect sense!

[@buddy6910]

Couldnt the end game for growth investing be switch ur stocks and whatever gains you have into passive/ dividend income ? And would it be smart to slowly shift it over to that as your near retirement , depending on the market of course . Or is it better to do it all at once when ur satisfied with where the markets at ?

[@bruceclyne5254]

This was a succinct presentation. Well done!

[@Sereaph]

Question, what's stopping me from combining these strategies to minimize the cons and maximize the pros for each? For example, I currently have a salary that is more than enough to cover my expenses, but I want to retire early and live by passive dividend income. What if I invested 100% in growth while I'm working to grow the most capital, THEN I retire and CONVERT my portfolio into 100% covered-call income? I would ride the capital gains from the growth strategy (which is the weakness of the income strategy), and have more capital to buy into covered-call funds. So my completely honest question, why do I see people committing to one strategy instead of staying flexible? Is there a downside to swapping around that I'm not seeing?

[@Krusherr]

It's true that all gains in the growth stocks are on paper only - until you sell. But when do you sell? It becomes very easy to get attached to the stock that is doing well and your instinct tells you to let it continue to grow. And it is very difficult to sell a portion of that same stock for income on a monthly/quarterly basis because psychologically you don't want to sell a stock that is going up in price nor do you want to sell when it is slightly down (because you think you are taking a loss on it).

[@PassiveIncomeInvesting]

Exactly!

[@dwaynecunningham2164]

Yup

[@sidb9540]

I suppose age also plays a role... if nearing retirement, why not just go for income based strategy... any growth related strategy is also not overnight plus unrealized...

[@blanksy_-]

in my retirement i go mostly for income now .. as you say growth is unrealised like RE ..

[@James_48]

I think as long as a retirement income strategy has a long term approach to deal with inflation and also provides for some kind of “splurge” or emergency - think around the world trip or health crisis then sacrificing some growth for income definitely makes sense. A lot of life events can happen where I might need more money than my investing income provides.

[@paob7580]

Thank you so much! Answered most , if not all, my questions here. Def didn't know about the covered call taxes

[@PittwaterMowing]

Keep that dividend snowball rolling

[@markusraff3578]

I focus on high yield but I also focus on dividend growth, because the expected dividend yield after let's say 10 years can be the same amount or higher than with the high yield investing. Also even then the dividend is likely to keep growing. So dividend growth is only attractive because the high yield the investments may have in the future.

[@PassiveIncomeInvesting]

Dividend growth is a common and good strategy as well . But it can take decades to get those high yields !

[@markusraff3578]

@@PassiveIncomeInvesting Ya, that's why I mix it with CEFs, Covered Call ETFs, REITs and BDCs.

[@PassiveIncomeInvesting]

Yeah … you got a lot of learning to do lol 😉😉 you’ll learn … we all start somewhere

[@p288212]

Another brilliant educational video - really well done!! It lays out the pros and cons of the most popular methods of investing with full disclosure of how you do business.... which is now how I do business!!! Keep it up!!!!!!

[@hcam8260]

Unfortunately, one more cons. With D.G.I in contrast to income investing. You need 2-3 times more starting capital to build good paying dividend portfolio.

[@frankkesel7252]

Using fractional share from as this is not true anymore

[@PassiveIncomeInvesting]

Sure but not all brokers offer fractional shares

[@subscribemytube]

Thank you. Thank you. Thank you. You are good at these videos. They help those of us who are not sure what strategy to focus on and they are very encouraging. Keep up the good work!

[@izik6894]

Wow. This is amazing content. Thank you so much! I have a question: can I have both, Growth and Dividend Income portfolios at 50% each in my taxable act? Thanks.

[@PassiveIncomeInvesting]

Of course ! You can have everything you chose ! It’s a free country ! 🇨🇦

[@izik6894]

@@PassiveIncomeInvesting I know about the "free country" part :) sort of free. My concern was the best way to structure such portfolio... Any suggestions?

[@PassiveIncomeInvesting]

Book a 1 on 1 with me 😎

[@zenow527]

I missed the live watching your other videos. Thank you for giving me the courage to do something with the money I was accumulating in my Questrade account fearful of taking the plunge.

[@aarondawkins8668]

Hi, great video. How do I find which funds will do the income you talk about? I’m in the uk and I also don’t understand what covered calls are.

[@jangyman]

Good post bud ....giving the people what they want!

[@passivelookup676]

Hey Adrian, Thanks for vids, always helpful. What is your thought on Brompton PWI split stock ? Is it good to pick it ?

[@PassiveIncomeInvesting]

Yeah it’s a cool and unique split fund to invest in some green energy stocks

[@passivelookup676]

@@PassiveIncomeInvesting ok great, thanks adrian. I will pickup few today

[@PassiveIncomeInvesting]

Cool ! It’s definitely the highest yield you can get off these newer green energy stocks , but there’s other stuff in there as well like car companies and telecom

[@jdbucha]

I firmly believe in devoting a portion of your portfolio to exponential growth stocks. I currently have 100,000 shares in a pre-IPO and over 200,000 shares in a couple of junior lithium stocks.

[@AK-gx4fh]

Solid video, thanks!

[@StephCoCo]

Thanks... Very useful

[@nickfifield1]

Great video . How did dividend stocks or funds perform during the market crashes ? Did yields drop or stop ?

[@PassiveIncomeInvesting]

See my “lessons learned” video . Also you can always check all my portfolio unveil videos all the way back from 2020

[@cuongcam5611]

Thanks Adrian. Very good info on passive income strategy. Have you ever experience a massive depreciation on your capital for a particular ETF or Split funds?

[@PassiveIncomeInvesting]

Of course ! but I mostly didn’t sell anything , so it doesn’t matter and will never matter

[@Fehlz1]

What if I use the income approach, but I don’t need the income. So I take the monthly income I get and reinvest it all and buy more higher distribution etfs. Obviously, to take advantage of compounding. So Is it now a growth strategy?

[@PassiveIncomeInvesting]

Exactly ! Turn on the drip and bang , you got growth ( that you can actually predict )

[@Fehlz1]

@@PassiveIncomeInvesting thanks for the reply. I maxed out both my wife's and my TFSA using your strategy back in July. Been good, own 14 of these things, and have it returning a combined 10.5%. However, the XIU and VFV has returned 25% this year and 15% year over year the last 5 years. Essentially, if you invested in an index ETF 5 years ago and let it ride each year, you would have doubled your money. Now that certainly isn't guaranteed going forward. I think historically, it's returned 10% CAGR. What is your experience with your strategy (now mine) in underperforming years? I'd like to be able to say that this strategy is a guarantee (mostly) 10% return. I'm giving up potentially higher returns in good years, but also gaining in worse years. Is that fair to say?

[@PassiveIncomeInvesting]

Yes I agree with your assessment . But for me , investing isn’t all about numbers or total return . This investing style is all about the passive income and how it enhances your quality of life and allows you to become financially free . You just can’t put a price on that . But this is my opinion . We’re in our mid 30s and retired so I can’t explain in words how valuable that is over , more total return in 10 , 20 + years .

[@YuginSkolov]

I learnt few things, age and stability in job with guidance and knowledge of stock market is fundamental win... The early you invest you will be winner. If you want to win later in age like me say I started when I was 45 I need to invest almost annual amount of my age so 45k first year second year another 46k etc ... Then only I can meet someone who has been investing from age of 18... But immigrants like me struggle hard to make living in New country and hardly able to save even 5k annually with few dependent in family ... I wish luck showers and we grow rich but I get stressed ...

[@valveman12]

Excellent video. Well explained.

[@efullname]

I can't afford to compound ENB, i can afford to compound ENS and I don't have to decide when to sell my ENS shares. Could you do an update on your RRSP and show us how far back you started and how's the compounding return now? Are you more growth oriented on your RRSP? Thanks again for sharing your investing experiences.

[@PassiveIncomeInvesting]

Rrsp update video is definitely due !! It’s all income as well . Aggressive income at that 😎

[@efullname]

@@PassiveIncomeInvesting I think you forgot to mention another con for income investor, the termination date although it's rare I saw it happen on HGI.UN. ENS manager may terminate it, I don't see ENB terminating though. We're lucky we have many choices in Canada. :-)

[@PassiveIncomeInvesting]

That’s a nothing burger

[@Jake51500]

Great video as always Adrian....as a 50+ investor with retirement coming in less than 10 years...a combination of growth & income styles are what I am attempting to do...with the dividends I am planning to either buy more of same ETFs ( ie HYLD) or pay down the mortgage. Sometimes I feel like I am on the right track but other times feel like I am a dog trying to chase 2 rabbits at once. Any thoughts? Thanks

[@PassiveIncomeInvesting]

stay focused on the long term and your goals. in the end, its always the same stocks anyways

[@dionangelini9066]

Solid breakdown again and I can see value in all strategies but love a solid chunk in income..why not enjoy it now and let the nest egg grow. Adrian, are you fully retired yet? With about $6000/month in passive income you would be crazy not to be :)

[@PassiveIncomeInvesting]

My wife is , I’m planning my exit 😎

[@marcos00114]

Im 33. That’s why I choose do growth

[@iskrazamalloa6171]

Pure gold as always, I am so happy that i found your channel YT and FB group :D. So far, what iam thinking for me is to start with the growth strategy (2k is what i have for invest) with reinvest dividends, even tho you mentioned will take 10 to 20 years to see a significally amount to sell. Is that correct?. Although i like better the "Income Stategy" but i believe doesn't suit me as for that you will need money and first i need to growth it. I hope i am doing right putting all the information together. Which index growth fund do you believe could be the best one for a canadian?. Thankful for all Adrian

[@PassiveIncomeInvesting]

Thanks ! Growth is easy to do . All you really need is 5 funds really . I have a same growth portfolio in my digital product but if you’re asking me which is the best passive index growth etf it would have to be the sp500 . There’s a bunch of them out there

[@iskrazamalloa6171]

@@PassiveIncomeInvesting appreciate your reply, thanks!!!!!!. Will keep follow both of your groups, keep educating myself and do my homework :). Have a great last month of the year !

[@iskrazamalloa6171]

@@PassiveIncomeInvesting omggggg didn't realize until now that you were saying about your digital product as DIY Investing package ☺️☺️☺️. Sorry, I guess I was too excited that didn't fully understand at the moment. But yes, I am buying right now the product and follow your guide, one more time, thanks a los Adrian

[@PassiveIncomeInvesting]

Good luck 😉

[@lceburns]

If you were to win let's say 3-5 mil in the lottery would you be confident investing an amount that big into covered call etfs without fear of losing your money? Cause an amount that big would be huge amounts of monthly income.

[@tysonmou1]

If you win the lottery, go to a financial planner or a wealth management firm. Before you claim that amount. Random people on youtube are no substitute for good financial advice especially when dealing with that much money.

[@neilmac4730]

3 million will give you 15 grand a month without ever going into the principal.

[@PassiveIncomeInvesting]

That’s exactly what I would do ! 😎

[@PassiveIncomeInvesting]

Mmmmm not sure about that one … depends on the KZbinr

[@msauerable]

return of capital is taxed. you have to subtract the roc from your cost base. it ends up increasing your capital gain if you sell.

[@PassiveIncomeInvesting]

I don’t sell …

[@msauerable]

@@PassiveIncomeInvesting That's awesome man. I must say your investing strategy is intreguing. I've been focused more on high dividend payers that have a history of growing payouts, but you get a lot more income.

[@PassiveIncomeInvesting]

So your a dividend growth investor . Also good and also works long term !

[@msauerable]

@@PassiveIncomeInvesting Yes I like dividend growth investing, and my goal is to have dividend income more than cover my expenses. I am going to think about adding in some of the funds which you highlight to my portfolio to increase the income. Perhaps a hybrid approach.

[@PassiveIncomeInvesting]

Sounds good ! I’ll never say my style is the best … I’ll only say it’s the best for ME. There’s no shortage of combos you can do between the 3 styles

[@nickfifield1]

Do dividend returns for income funds keep pace with inflation?

[@PassiveIncomeInvesting]

F*** inflation . The media got you scared . Syria war , trade war , Ukraine war , Taiwan tensions , now Inflation Next year it will be something else .

[@cslewis1404]

Can I do smith manoeuvre with income investing plan?

[@md8473]

Great video. I watched it again today. Like the pros and cons. Capital appreciation is lower with income investing vs growth strategy. But with income investing doesn’t the initial capital go down over the horizon?? E.g: price of DFN and LBS over the max horizon has gone down since inception. Shouldn’t they be at least flat if not up. In other words isn’t an investor being paid their own capital via high yield dividends and hence the price goes down over time. And is there a possibility that the fund may just lose its entire value risking your principal investment?

[@roglSimpson]

Yes, that's a good point. What's more, I've looked up the dividend history of DFN and LBS, and they haven't raised their dividend since inception (let's pretend they don't also miss distributions). It just goes to show that it's not a good long-term investment. Not only your capital is getting drained, but you're slowly losing the battle against inflation. 10 cents 10 years ago had way more value than they do today. Of course, Adrian will just shrug this off and say you worry too much :) I wish he would support his claims with better arguments than "don't worry" or "I have my RRSP", because the whole point of this channel is to stop working (and stop adding more shares) at some point and live off the distributions for the rest of your life. Once you do that, it would be very interesting to test this type of portfolio and see how long it would last before distributions wouldn't cover the lifestyle expenses any more. For example, I wonder if their $70k a year (before taxes) will be worth enough in late 2040s/early 2050s when they could start drawing down from the RRSPs. I'm a long-term fan and follower ever since the channel had like a 1000 subscribers, and while I still appreciate the transparency and Adrian's efforts to help us, I'm no longer sure if this is a good approach. Especially since Adrian is still working and growing his portfolio, so there's just not enough experience with actually living off of these investments for like 10 or 20 years without contributing.

[@simplytrading5100]

I feel you should always be contributing at least a little even if you’re living off of them. Because would you rather have $150 a day today or $200 a day in 5 years. If you stop adding you’re limiting your income growth

[@simplytrading5100]

But good poing

[@PassiveIncomeInvesting]

Every fund is different , it depends on the fund and how aggressive the covered calls are . And no it won’t go to zero lol . Look what’s inside the funds … you think all those blue chip will go to zero?

[@PassiveIncomeInvesting]

I appreciate being a long term follower . It’s not an investing style for everyone . It’s the best strategy out there for people who want maximum passive income . If your living off of it , it’s your responsibility to make sure you have enough to fit your lifestyle . Some People can comfortably live off 3 k a month , some can live on less and some cannot. It’s your responsibility to ensure you have enough for the long term. But don’t blame the strategy

[@Billythekid_2308]

Hi Adriano. Any chances you lower the price of your package for boxing day? Not that it is expensive, but as you know, we who follow your channel love spend little and keep/invest more. 😉🙃. If you decide to do so, would you post it in your Facebook group? Thanks Adrian. Happy holidays!

[@PassiveIncomeInvesting]

lol its already worth every penny :)

[@Billythekid_2308]

@@PassiveIncomeInvesting I am sure of that. Planning to buy it soon!! Take care!!!

[@adamkomarnicki5632]

Do you have any video for EU investors? Being EU citizen means harder access to US or Canadian ETFs

[@PassiveIncomeInvesting]

no sorry :( no expertise with that

[@dawsonstoneroad7549]

Dude if covered calls are taxed less than dividends in canada how is everyone there not filthy rich?

[@PassiveIncomeInvesting]

well it depends on your tax bracket. dividends are better in the lower tax brackets . but its Canada!! even lower tax is high here lol

[@cslewis1404]

With passive income can you use this to buy a home or pay off mortgage? Just curious.

[@PassiveIncomeInvesting]

You can do whatever you want , it’s your income 😉

[@grantboucher9342]

what about the etf thats gives high return but the share price drops over time 5 or 10 years shows big decreases

[@James_48]

It’s a good idea to understand the long term value of a high dividend payer. There are tools out there that let you back test investments historically to understand how they compare on total return. Comparing high yield picks with blue chippers like RY or ENB shows that the high yield picks rarely (almost never) out perform on total return.

[@arkadandfortuna1582]

I’m confused, I thought ‘INCOME’ style is the same as ‘DIVIDEND’ style cause they're both providing income via dividends...

[@PassiveIncomeInvesting]

Not necessarily, I explain the differences in the video …

[@LaMach420]

To help the channel grow

[@jamestrebilcock8310]

I was really hoping you would do drip.

[@nickfifield1]

I guess you went from Growth stocks, until you retired and then moved to Dividend stocks?? Is this a standard approach?

[@PassiveIncomeInvesting]

Mmm it can be , but there’s a million “approaches” . The key is finding the best one FOR YOU

[@TheBigeasy82]

John bogle!!!!!!!! Lol

[@frankkesel7252]

What you said on div being more tax is not entirely accurate. If div are your only income you are tax 0% in Ontario up to 50 k. I think it's important to mention it. Another point I can wait to hear how your income strategy will perform during a 5 or 7 years crash like 2000 or 2008 . For sure the windowsill be impacted more then dgir

[@James_48]

I agree. 100% eligible dividends are extremely tax efficient, especially when there is not much income from other sources. An Ontario couple can earn up to $104,000 per year in eligible dividends and not pay any tax as long as there’s no other income (CPP/RIF/OAS).

[@PassiveIncomeInvesting]

That’s true , but on paper they are less tax efficient if you have other income