When it comes to earning a second income, dividend stocks are often a popular choice. The predictability of returns allows for better financial planning. However, growth stocks may offer higher returns, although they come with more uncertainty. Evaluating a growth stock involves looking at its past performance and future prospects.
Two FTSE 100 shares to consider are Experian and Antofagasta. Experian, a Dublin-based credit reporting firm, has shown strong past performance with annualized returns exceeding the FTSE 100 average. However, its growth potential may be hindered by its high valuation. On the other hand, Antofagasta, a long-established mining company, has seen impressive returns in recent years. But with significant geopolitical risks and uncertainty surrounding future growth, it may not be the best investment at the moment.
In conclusion, while growth stocks like Experian and Antofagasta may offer lucrative returns, it’s important to carefully assess their past performance and future prospects before making any investment decisions.