Tuesday, April 8, 2008

Dividend vs Growth?

Investors can have an endless debate on what should be given the priority - Dividend or Growth?
In my opinion, the answers lies in the economy. In an emerging market like BRIC where growth is the key, the wise decision would be to choose a growth oriented company. The companies which reinvest their earnings become highly successful in the growing market. Reinvesting the money is better than giving it back to shareholders as dividends.