The 3 common investing methods used by stock investors

1) Dividend investing
2) Value investing
3) Growth investing

/1

Dividend investing
- Dividends as the main source of return
- Invest stocks with high and growing dividends (>4%)
- A beginner friendly method as stocks are usually large and mature companies.

/2

Value Investing
- Invest only in undervalued stocks
- Calculate the intrinsic value and buy it within it& #39;s margin of safety
- A lot of efforts required in research
- An approach used by Warren Buffett

/3

Growth investing
- Invest in young and small cap companies with high growth rates.
- Capital appreciation as the main source of return
- High return, high risk approach as growth stocks are very volatile.