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Markets & Stocks
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SUBSCRIBER EXCLUSIVE
Dividends rule!
For decades growth stocks have dazzled, but new tax laws should change what's in your portfolio.
August 11, 2004: 5:41 PM EDT
By Michael Sivy, MONEY Magazine

NEW YORK (MONEY Magazine) - The gospel of investing doesn't always prove true, as the preceding story shows. But since the 1960s, one tenet of faith has remained firm: The best way to build wealth is to buy and hold growth stocks -- staking your financial future on the shares of companies that increase their earnings by more than 12 percent year after year.

These glamour stocks rarely pay much in the way of dividends, on the theory that investors do better when profits are reinvested to fuel earnings growth.

Retirees who need cash to live on should own old-line blue chips that pay shareholders every three months, the gospel says. But to build wealth, you want growth.

Not anymore.

Continued...  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.