I recently was annoyed to hear this from friends and random colleagues: “I buy dividend stocks for income, and growth stocks for capital gains.”Sounds logical right? One category pays you cash. Different tools for different jobs. This mental framing makes people do illogical things like holding onto mediocre dividend stocks or avoiding fantastic companies because “it doesn’t pay dividends.”Before we continue, here are a few warnings:Where do dividends come from? When a company pays you a $1 dividend, it literally takes $1 from its assets to pay you.