Dragon Claws
Investment thesis
Investing in growth companies looks very tempting, given the possibility of earning thousands of percent capital gains over the long term. For example, if you had invested $10k in Nvidia (NVDA) ten years ago, today, the investment would be worth more than $1.5 million, representing an annualized return of 65%. It is quite unlikely that any of the dividend stocks will be able to match anything close to it. However, amidst the allure of potential exponential returns, it is crucial to understand the rarity of discovering the next Nvidia, as thousands of stocks are traded in the U.S., with hundreds of IPOs each year. In the current stock market, when valuations are hot and Warren Buffett is sitting on a vast cash pile, it is crucial for investors to balance their portfolios with high-quality dividend names, and that is the reason why I have been actively covering REITs recently. A monthly-income…
