Morningstar StockInvestor vs DividendInvestor: Which Newsletter Fits Your Portfolio?

You’ve decided on Morningstar. That’s the easy part. Now comes the harder question: do you follow the portfolio built for capital growth, or the one built for dividend income?

Morningstar StockInvestor and Morningstar DividendInvestor share the same publisher, the same editor (David Harrell), and the same economic moat methodology. They even share some of the same holdings. But they’re designed for fundamentally different investment goals — and picking the wrong one means your portfolio is working toward someone else’s objective.

Morningstar StockInvestor is the better choice for most investors. It offers two distinct real-money portfolios (the defensive Tortoise and the growth-oriented Hare), a longer 24-year track record dating to 2001, and more strategic flexibility. Unless you specifically need current income from your portfolio, StockInvestor gives you more room to grow.

But Morningstar DividendInvestor wins if you need income now — or if you’re building a portfolio designed to generate reliable cash flow in retirement. Its Dividend Select portfolio yields approximately 3.3% and generates roughly $33,000 per year from nearly $1 million in real money. For income-focused investors, that focus is the entire point.

Here’s how to decide which newsletter belongs in your toolkit.

Morningstar StockInvestor vs Morningstar DividendInvestor: Side-by-Side

Both newsletters give you access to Morningstar’s proprietary ratings — star ratings, economic moat assessments, fair value estimates, and capital allocation scores. The difference is what they do with those ratings.

Morningstar StockInvestor: Two Portfolios, One Moat Framework

Morningstar StockInvestor launched in June 2001 and has navigated every major market cycle since: the dot-com aftermath, the 2008 financial crisis, the COVID crash, and the 2022 bear market. That 24-year track record is one of the longest among premium stock newsletters.

The core offering is two real-money model portfolios, each with nearly $1 million of Morningstar’s own capital at stake.

The Tortoise Portfolio is managed by Michael Corty, CFA, and takes a defensive, value-oriented approach. It targets undervalued wide and narrow moat companies with strong balance sheets — think Berkshire Hathaway (held since 2001), JPMorgan Chase, Meta Platforms, and Alphabet. The Tortoise holds roughly 31 positions and maintains a small cash buffer (~4.8%). This is the “sleep at night” portfolio.

The Hare Portfolio is managed by Grady Burkett, CFA, and accepts more volatility in exchange for higher return potential. It pursues wide-moat companies with stronger growth characteristics — recently adding Airbnb to the portfolio in April 2025. The Hare is for investors who want moat-based investing with a growth tilt.

What makes it valuable:

The dual portfolio structure gives you flexibility. Conservative? Follow the Tortoise. Want growth? Follow the Hare. Somewhere in between? Blend elements of both. Most competitors lock you into a single strategy. Morningstar StockInvestor lets you adjust based on your risk tolerance and market conditions.

Each monthly issue includes complete portfolio tables with every data point: star ratings, moat ratings, capital allocation scores, fair value estimates, price/fair value ratios, exact share counts, and position sizes. Weekly email updates keep you informed between issues.

What to watch for:

Performance data is not publicly disclosed. This is a significant limitation — you’re trusting Morningstar’s methodology and the fact that they invest real money, but you can’t independently verify returns against a benchmark. Portfolio turnover is also low, which is a feature for patient investors but frustrating if you want frequent new ideas.

The real differentiator: Morningstar invests its own capital. The Tortoise portfolio alone holds nearly $945,000 of real money. This isn’t paper trading — it’s skin in the game.

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Morningstar DividendInvestor: Income Investing with a Moat

Morningstar DividendInvestor launched in January 2005 and is built around a single objective: generating reliable income from quality dividend-paying stocks. The approach is straightforward — buy moat-protected companies that pay and grow their dividends, hold for the long term, and let compounding do the work.

The Dividend Select portfolio holds approximately 34 positions totaling roughly $985,000 in real money, generating about $32,930 per year in dividend income. That translates to an average portfolio yield of approximately 3.3%.

What makes it valuable:

The income focus changes everything about how you evaluate stocks. Morningstar DividendInvestor doesn’t just look at moats and fair value — it analyzes dividend sustainability, payout ratios, free cash flow coverage, and dividend growth rates. Every holding is evaluated through an income lens.

Holdings span a range of yields and sectors: JPMorgan Chase (1.8% yield, owned since 2022), Enbridge (5.8% yield, owned since 2018), Pfizer (6.7% yield, owned since 2016), and Wells Fargo (2.0% yield, owned since 2005). The portfolio includes US stocks, ADRs like Enbridge, GSK, and Roche, and REITs like Lamar Advertising and American Tower.

The Five and Dime List is a proprietary annual screen that identifies companies with five consecutive years of 10%+ dividend growth, a narrow or wide moat, low to medium uncertainty, and at least a 1% yield. The March 2025 list included 13 companies such as Broadcom (14.2% five-year dividend CAGR), Domino’s Pizza (18.5%), and MSCI (20.6%). This screen alone is worth studying for dividend growth investors.

What to watch for:

Dividends are not guaranteed. Companies can cut or suspend dividends at any time, and DividendInvestor’s portfolio has faced this reality over its 20-year history. International holdings add complexity: foreign dividends may be subject to withholding taxes and currency risk. And like StockInvestor, full performance data with benchmark comparisons isn’t publicly available.

The real differentiator: DividendInvestor doesn’t just chase yield. The Five and Dime List and moat framework ensure you’re buying dividend growers, not yield traps. A 3.3% yield growing at 10%+ annually doubles your income in roughly seven years.

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Head-to-Head: Where They Actually Differ

These two newsletters look similar on paper. Same publisher, same editor, same moat methodology. But the differences matter more than the similarities — including a meaningful price gap ($170/year for StockInvestor vs $239/year for DividendInvestor).

Growth Strategy vs Income Strategy

This is the core divide. Morningstar StockInvestor optimizes for total return. Its Tortoise portfolio holds Berkshire Hathaway at a 9.4% position weight — a company that pays zero dividends. The Hare portfolio recently added Airbnb, another non-payer. The logic is simple: these companies reinvest earnings for growth rather than distributing them.

Morningstar DividendInvestor will never hold a non-dividend payer. Every position must contribute to the portfolio’s income stream. That constraint forces different stock selection even when evaluating the same universe of moat-rated companies.

Two Portfolios vs One Focused Portfolio

Morningstar StockInvestor gives you two lenses on moat investing: defensive value (Tortoise) and growth (Hare). You can follow one or blend both. Morningstar DividendInvestor gives you one portfolio with a single, clear mandate: income from quality.

For some investors, the dual-portfolio structure provides valuable flexibility. For others, the single-focus approach removes decision fatigue. If you already know you want income, you don’t need two portfolios to choose from.

Portfolio Overlap and Divergence

Both newsletters hold some of the same stocks. JPMorgan Chase, Wells Fargo, and Philip Morris appear in both. But the weighting and rationale differ. StockInvestor holds JPMorgan for its competitive position and growth potential. DividendInvestor holds it for its 1.8% yield and dividend growth record.

Where they diverge is more telling. StockInvestor’s Tortoise holds Alphabet (0% yield) and CarMax (0% yield) for capital appreciation. DividendInvestor holds Pfizer (6.7% yield) and Enbridge (5.8% yield) for income. These are fundamentally different portfolio construction philosophies using the same analytical framework.

Unique Tools and Screens

Morningstar StockInvestor publishes annual moat reviews documenting upgrades and downgrades across Morningstar’s coverage universe. The April 2025 issue tracked 105 moat rating changes in 2024 — 58 upgrades and 47 downgrades. Notable examples: Shopify and GE Aerospace were upgraded to wide moat, while Berkshire Hathaway and Comcast were downgraded from wide to narrow. These shifts directly influence portfolio decisions and help you understand which competitive advantages are strengthening or eroding across the market.

Morningstar DividendInvestor’s Five and Dime List is a systematic approach to finding dividend growers that most investors would never discover through basic screening. The 2025 list includes names like Broadcom (14.2% five-year dividend CAGR), Domino’s Pizza (18.5%), and MSCI (20.6%) — companies growing dividends at rates that double your income within five years. The newsletter also publishes Dividend Growers tables ranking holdings by five-year annualized dividend growth, plus “The Week in Dividends” updates tracking declarations, payments, and ex-dates.

Why This Matters in Today’s Market

With the S&P 500 CAPE ratio at approximately 40 — the second-highest level in 155 years — and CPI confirmed at 2.4% (Core 2.5%, the lowest since April 2021), the choice between growth and income is becoming more consequential by the week. The dispersion between top and bottom performers has reached 81 points, with the top 20 stocks gaining +50.2% and the bottom 20 losing -31.2%. The S&P 500 itself sits flat at 6,832.76 YTD — rewarding stock pickers who got the call right, punishing index huggers.

The disinflation trend is driving rotation into exactly the names Morningstar DividendInvestor holds. Consumer Staples have surged +15.2% and Energy +21.6%, while Financials have crashed to -5.7% and Tech sits at -3.1%. The 10-Year Treasury at 4.04% (lowest since November) makes dividend stocks relatively more attractive versus bonds, and four months of declining CPI directly improves dividend purchasing power. Morningstar StockInvestor’s moat framework helps identify companies that can compound above index-level returns through the volatility. Buying wide-moat stocks below fair value provides a margin of safety that pure growth investing does not.

Morningstar DividendInvestor’s income approach provides a different kind of resilience. A portfolio yielding 3.3% and growing that yield at 10% annually delivers tangible income regardless of what the S&P 500 does. When the VIX sits at ~21.77, gold pushes above $5,000, and consumer confidence hits a 12-year low, dividend income becomes the ballast that keeps you invested through the uncertainty.

How to Decide

Choose Morningstar StockInvestor if:

• You’re still accumulating wealth and don’t need portfolio income yet
• You have 5+ years before retirement or before you’ll draw on your investments
• You want the flexibility of both a defensive and a growth-oriented strategy
• You prefer the longer 24-year track record through more market cycles
• You’re comfortable holding companies that don’t pay dividends

Choose Morningstar DividendInvestor if:

• You need current income from your portfolio (retirement, supplemental income)
• You’re specifically building a dividend growth strategy for future income
• You want a systematic approach to finding quality dividend growers (Five and Dime List)
• You value international diversification through ADRs and REITs
• You want every holding contributing to an income stream

Consider subscribing to both if:

• You’re five to ten years from retirement and want to transition from growth to income
• You have a large enough portfolio ($200K+) to benefit from both strategies
• You want the most complete picture of Morningstar’s moat-based investing approach
• The combined $409/year is a minor cost relative to your portfolio size

The tiebreaker: Ask yourself what you’d do with the dividends. If you’d reinvest them anyway, you don’t need a dividend-focused portfolio — Morningstar StockInvestor’s total return approach already captures that value. If you’d spend them or use them to fund living expenses, Morningstar DividendInvestor is built exactly for that purpose.

The Bottom Line

Morningstar StockInvestor is the better choice for most investors. The dual-portfolio structure, longer 24-year track record, and total-return focus align with how the majority of investors should think about wealth building. With both the defensive Tortoise and growth-oriented Hare at your disposal, you get more strategic flexibility at a lower $170/year price point.

Morningstar DividendInvestor is the better choice for income investors. If you need your portfolio to generate cash — or if you’re building toward that goal within the next few years — DividendInvestor’s focused approach, Five and Dime screening methodology, and ~3.3% portfolio yield deliver exactly what a total-return portfolio cannot: a reliable income stream from moat-protected companies.

Both newsletters share Morningstar’s institutional-grade research, real-money portfolios, and the same experienced editor. You’re not choosing between a good service and a bad one. You’re choosing between growth and income — and only you know which one your portfolio needs right now.

Past performance does not guarantee future results. Both newsletters are for educational purposes and should not be construed as personalized investment advice.

For individual reviews, see our Morningstar StockInvestor review and Morningstar DividendInvestor review. If you want the research tools instead, see our Morningstar Investor review.

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Try Morningstar DividendInvestor

Frequently Asked Questions

Morningstar StockInvestor vs Morningstar DividendInvestor: which is better?

Morningstar StockInvestor is better for most investors. It offers two real-money portfolios (Tortoise and Hare) with a 24-year track record, providing both defensive and growth strategies at $170/year. However, Morningstar DividendInvestor is the better choice specifically for income-focused investors who need their portfolio to generate cash flow. DividendInvestor’s Dividend Select portfolio yields approximately 3.3% and generates roughly $33,000/year from nearly $1 million invested.

Is Morningstar StockInvestor worth it?

Yes, for long-term investors who want to follow real-money moat-based portfolios. At $170/year, Morningstar StockInvestor provides access to Morningstar’s proprietary ratings (star ratings, moat assessments, fair value estimates) through two model portfolios with 24 years of history. The Tortoise portfolio alone holds nearly $945,000 of Morningstar’s own money. The main limitation is that detailed performance data isn’t publicly disclosed, so you’re trusting the methodology and the skin-in-the-game approach rather than verifiable return numbers.

Is Morningstar DividendInvestor worth it?

Yes, for income-focused investors who want quality dividend stocks. At $239/year ($70.95/quarter), Morningstar DividendInvestor provides a real-money Dividend Select portfolio generating approximately $33,000 in annual income from moat-protected dividend payers. The Five and Dime List — identifying companies with five consecutive years of 10%+ dividend growth — is a unique screening tool you won’t find elsewhere. The service is less suitable if you don’t need current income, since a total-return approach would give you more flexibility.

Can I use both Morningstar StockInvestor and Morningstar DividendInvestor?

Yes, and it makes sense for investors in transition. Both newsletters are separate subscriptions — StockInvestor at $170/year and DividendInvestor at $239/year ($409/year combined). They share some holdings like JPMorgan Chase and Wells Fargo, but the portfolios serve different goals and hold many different positions. Combining them gives you Morningstar’s complete perspective on moat investing — growth through StockInvestor’s Tortoise and Hare, income through DividendInvestor’s Dividend Select. This approach works particularly well for investors five to ten years from retirement who are gradually shifting from accumulation to distribution.

Do Morningstar StockInvestor and DividendInvestor have the same editor?

Yes, both newsletters are edited by David Harrell, who joined Morningstar in 1994. While the editor is the same, the portfolio managers differ: StockInvestor’s Tortoise is managed by Michael Corty, CFA, and the Hare by Grady Burkett, CFA, while DividendInvestor’s Dividend Select is managed by George Metrou, CFA. This means the investment philosophy and Morningstar’s moat framework are consistent, but the stock selection and portfolio construction reflect each manager’s distinct approach.

How much overlap is there between the two portfolios?

Both portfolios hold some of the same wide-moat stocks — JPMorgan Chase, Wells Fargo, and Philip Morris International appear in both. However, the intent differs: StockInvestor holds these for total return potential while DividendInvestor holds them for income contribution. The key divergence is in non-overlapping positions: StockInvestor’s Tortoise includes non-dividend payers like Alphabet and CarMax for growth, while DividendInvestor holds higher-yielding names like Pfizer (6.7% yield) and Enbridge (5.8% yield) that StockInvestor skips. Expect roughly 20-30% overlap with fundamentally different portfolio construction logic.