In this installment of Vladstocks, DJ Vlad breaks down dividend stocks vs. growth stocks. He explains how shareholders can receive dividend payments by electing to get paid in cash or opting for a dividend reinvestment plan or DRP (pronounced drip). This plan reinvests the dividends a shareholder earned in order to gain more stock in a particular company.
DJ Vlad then breaks down what growth stocks are and the types of companies that fall into this category. He explains how these companies don't divvy out dividends but rather reinvest the profits into the company which in turn is supposed to raise the stock price. He also remarks that despite companies like Google, Facebook, Amazon, and Netflix being growth stocks, they'll eventually begin dishing out dividends after gaining a large enough market share.
