If I must choose Between stable dividends and fractional shares of growth stocks, I still favor stocks showing stable dividend.

Unlike most small investors, I want “cash cow assets” producing dependable current income for several financial needs like family support, and to supplement my salary, and enhance brbr . Rental property is the archetype of cash cow. Even when NAV (resale valuation) drops, rental income keeps coming in. In equities, Utility stocks are the closest thing.

With the hot growth stocks, I indirectly hold a lot of fractional shares via the funds I bought. One share of an ETF or $1000 of a mufu hold lots of fractional shares, due to the fundamental nature of these products.

Some examples

• WNS
• Twitter
• Moderna
• Baba, JD.com

— Drawbacks with low-dividend growth stocks, in bad times (or good times)
Background: I prefer to periodically cash out some small (fractional) quantity of shares for the reasons stated in the beginning. Fractional liquidation might be comparable (a poor cousin?) to periodic dividend payout.

• when a growth stock has fallen but I need some cash … it’s hard to convince myself to liquidate 1.1%. No such agony with a dividend stock, whose business model supports stream of dividend, which meets my financial needs.
• liquidating a productive asset .. psychologically or effectively, each time we would be liquidating some 1.1% of a productive asset. It feels stupid, unwise, and adds to the reluctance and burden of due diligence. In contrast, dividend stocks are cash cows and we never need the agony to kill the cow to get the milk. Echoed on [[Living off Dividends in Retirement]]
• one of the key drawbacks is the loss of sleep and focus at work. (See buy-n-forget→ sleep]peace, focus@work: avoid 0-div ) This risk is reduced by consistent dividends, which helps me achieve buy-n-forget.
• due diligence @ each sell= burden …. You have to endure due diligence each time, regarding when and how to cash out some amount. The current income thus produced is unstable, inconvenient, stressful….If you happen to be busy with work, family member, illness or any major decision, then you don’t want the extra job with the due diligence. Echoed on [[Living off Dividends in Retirement]]
• timing/window …. each time we worry about missing the best window to liquidate some (albeit small ) quantity of this grow stock.
• Tax Lot accounting …. is a non-trivial “extra job”.
• Fractional shares don’t support limit orders. Some growth stocks are too big to sell in one whole share.
• pre-clearance .. each time you need a pre-clearance. If you forget it, you run the risk of compliance violations