What's the difference between dividend-growth investing and high-yield investing?

Dividend-growth investing focuses on companies with a track record of steadily increasing their dividends year after year, often prioritizing quality businesses with room to keep raising payouts, even if the current yield is modest. High-yield investing targets stocks or funds paying the largest dividends right now, which maximizes current income but often means slower-growing or riskier companies more prone to cuts. Growth-oriented dividend strategies have historically delivered stronger total returns and rising income over time, while high-yield strategies deliver more cash today but less growth. Which fits you depends on whether you need income now, as many retirees do, or are still building wealth. For accumulators, focusing on total return through a broad index fund often beats chasing either style. Match the approach to your actual goal and time horizon.