Isn it always better to invest in stocks that will pay high dividends?
No, not always. It depends on what you’re looking for in your investment. If you want regular income from stocks, you should look for a company that has an established policy of paying large cash dividends on a regular basis. But if you are more interested in long-term capital gains (achieved by a higher selling price than purchase price), you should look for a growth stock. Generally, firms with strong growth records pay smaller dividends because they retain their profits to keep the company and its capital stock growing.
