Investment goal | Stability Relatively consistent in growth and more resistant to economic instabilities | Steady income Stable dividend payments and possibly capital appreciation gains | Capital appreciation Stock value to possibly grow at an above-average rate as compared with peers or overall market |
Risk | More established companies are more stable but could also generate relatively slower growth and lower returns | Dividend payment may not be made, and interest rate fluctuations can affect dividend earnings | Stock price may be susceptible to a fair bit of fluctuation |
Investment period | Beyond a year due to their stability | Up to 12 months or more if seeking stable, recurring income | Up to 12 months |
Trading strategy | Passive trading (buy-and-hold) | Active trading |