ASX Stocks- Choosing between Dividend and Growth Stock in Australia

ASX Stocks (Australian Securities Exchange) is one of the primary share exchanges of Australian Economy established by creator of Australian Exchange and Sydney future Exchange. ASX Market has a daily average turnover of $4.685 billion and having market capitalization of about 1.4 trillion. Mostly it has seen that investors look confused while choosing between income/ dividend and growth Shares. It seems quite hard to make a decision for them whether they should go for income through shares in form of dividends or they should just stick themselves to get better growth through ASX Dividends. Australian Economy heavily depends on ASX share Market and it was ranked 5th largest financial system out of 57 global economies of the world. Talking about equity market Australia hold it comes on 2nd largest in Asia pacific region.

So for Investors the question arises that how to get the best returns through their Australian Dividend Stocks? Income shares are generally those types of shares which pays you certain amount of income at regular time intervals and this income is called dividends on the shares you have purchased and being given by the company after earning some profit through their services and operations in market. In face decision of giving dividends to shareholders is completely based on a particular company as company’s board of director’s decides it that whether they should distribute a certain amount of their profit to shareholders or they can reinvest the money into their business again. Later process is known as Capital Re-investment in Financial World. Mostly it has seen that real estate investment trusts and banking sector organization provide high dividend yield to their investors thus producing more dividends therefor chances of getting capital growth becomes comparatively less with such type of ASX Australian stocks.

So you may take it as a rule of thumb that companies which provides you better dividend yield will not be probably providing you that much of capital growth on your ASX Dividends Shares compare to other organizations which provide lower dividend yield and better capital growth. Choice is yours which side to go. If you want income rather than better growth then choosing such shares which provide you higher dividend yield is a better option. Instead of Income shares growth shares are tend to provide much better capital gains on a comparatively low dividend yield than income stocks. One needs to put proper attention while choosing any one of those as both have their own benefits.

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