| Type |
|
Suited for which type
of investor |
|
Expansion
opportunities |
|
Competition |
|
Does what with profits |
|
Relates to |
|
Watch out for |
| Defensive |
|
Conservative, who wants to be proactive when recession appears imminent |
|
Average |
|
Average |
|
Usually pays out enough for substantial dividends with some kept to grow business |
|
The best may also be blue chips |
|
Some things thought to be defensive may not be, such as fuel and prescription meds |
| Income |
|
Conservative, retirees who need recurring cash payments and who can't afford big losses |
|
Limited |
|
Limited |
|
Pays most out as dividends |
|
Opposite of growth |
|
Corporations with dividend yields that are very high, as they may be about to cut the dividend |
| Growth |
|
Aggressive, younger investors who can make up for losses if they occur |
|
Tremendous |
|
Especially fierce |
|
Keeps all or nearly all for growing the business |
|
Opposite of income |
|
Not all corporations can dominate huge new markets. Shares price of those which fail can drop dramatically |
| Blue chip |
|
Average risk taker who wants some income but also some growth potential |
|
Average |
|
Average |
|
At least a minimal dividend payout but can be significant enough to compete with income corporations |
|
Can also be defensive. Opposite of penny |
|
A dying breed as it's harder than ever to stay on top, evidenced by many meltdowns among former blue chips |
| Value |
|
Conservative, patient investor who wants to reduce risk of downward move in share price |
|
Average |
|
Average |
|
Varies from no dividend payout to reasonable dividend
|
|
|
|
"Value trap", as the share prices of some doomed corporation pause on the way down |
| Cyclical |
|
More involved, one who wants to profit from state and direction of the economy |
|
Good during economic expansions, poor during recessions |
|
Average |
|
Varies from no dividend payout to reasonable dividend
|
|
Opposite of anti-cyclical. Difficult to also be a blue chip |
|
Prolonged recessions and the cutting of dividends to help them survive |
| Anti-cyclical |
|
Alert "go anywhere" investors who want their investments to be on offense at all times |
|
Poor during broad economic expansions, good during recessions |
|
Average |
|
Varies from no dividend payout to reasonable dividend
|
|
Opposite of cyclical |
|
Governments which may act to limit practices they see as abusive to consumers |
| Penny |
|
Gamblers |
|
Tremendous |
|
Varies |
|
If it has profit, keeps all of it to grow business
|
|
Opposite of blue chip |
|
"pump and dump" schemes, where fake positive news and buzz temporarily drive share price higher |
