Hey Jaiml,
I may have a bit of a different take.
Typically, during and after a comprehensive market down-turn you might be likely to see quality dividend/dividend growth companies realize a more limited decline and faster recovery due to their historical dividend payout and dividend growth. Quality dividend/dividend growth companies are often viewed as 'safer' in comparison to growth companies by investors and money managers attempting to gain long-term value and income. So, if Mr Market pulls quality dividend growth companies down with bear market in total, some would consider it a value play opportunity. The lower the price the potential for higher yield.
I will often purchase a growth stock and AIM for short-term until I have an overall 23% profit in total and sell-out. However, if I can obtain a quality dividend stock (JNJ and PG currently on my watchlist) when Mr Market takes a dump and pulls them down, I'll begin a long-term AIM program with intent of accumulating shares (as you mentioned in a previous post) and carrying into retirement for income purposes. However, I still AIM the dividend stock and take advantage of price growth/cash accumulation. CVX and COP are my most recent dividend play purchases as Oil stocks have been driven down. I waited until both were below 33% of recent highs before initial entry.
You're correct in that growth stocks will typically provide more volatility than dividend stocks which AIM enjoys. But I'm guessing the dividend/dividend growth and lower risk (Beta) may be an equalizer when comparing overall gains over time to volatile growth stocks (many flop).
Always comes down to your personal goals, time-line, activity need, and patience. It's about growing your portfolio assets with eye on risk mitigation. Maybe a mix of growth and dividend plays.
I love money, I'm emotionally attached to it, and it loves me:)
Best, Alton
