Growth & income
Some
stocks are considered growth investments, while others are considered
value
investments. From an investing perspective, the best evidence of
growth
is an increasing price over time. Stocks of companies that reinvest
their earnings rather than paying them out as dividends are often
considered potential growth investments. So are stocks of young,
quickly expanding companies.
 Value
stocks, in contrast, are the stocks of companies that have financial
problems, have been underperforming their potential, or are out
of favor with investors. As a result, their prices tend to be
lower than seems justified, though they may still be paying dividends.
Investors who seek out value stocks expect them to stage a comeback.
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