The Motley Fool's Generational Investing Trends Survey for 2025

The Motley Fool's Generational Investing Trends Survey reveals the surprising rise of Gen Z dividend investors and more.

By Jack Caporal – Updated Mar 11, 2026 at 3:39 PM EST

Key Points

67% of Gen Z and 66% of millennials own AI stocks, anticipating long-term positive market impacts.
Millennials are the most bullish on AI's market benefits; 73% foresee strong returns over the next decade.
Dividend investing is popular as a side hustle among young investors, which they learn about through platforms like YouTube.

A Motley Fool survey of 2,000 individual investors in the U.S. reveals that Gen Z and millennials – whose ages span from 18 to 45 – are all-in on AI stocks, and they’re far more bullish on artificial intelligence than older generations.

Along with AI stocks, younger generations are also embracing dividend investing as a side hustle, picking up the basics on YouTube and TikTok. Both reflect broader investing trends reshaping how the next generation of individual investors plans to build wealth.

Here’s more on what The Motley Fool's 2026 Generational Investing Survey found.

Gen Z and millennials are all-in on AI stocks

Nearly 6 in 10 individual investors (59%) surveyed by The Motley Fool currently hold AI-related stocks, and the younger the investor, the more likely they are to own them.

67% of Gen Z and 66% of millennials own AI stocks, compared to 50% of Gen X and 37% of baby boomers.
Among Gen Z and millennial AI stock owners, the majority plan to hold them for 10 or more years. 43% of millennials and 41% of Gen Z describe themselves as long-term holders.
Gen X and baby boomers are more likely to either not own AI stocks or plan to exit within a decade (50% and 63%, respectively, don't own AI stocks at all).
Only 10% of Gen Z and 9% of millennials say they have no plans to invest in AI stocks versus 18% of Gen X and 34% of baby boomers.

Loading paragraph...

Millennials are the most bullish generation on AI's market impact

Across generations, most individual investors believe AI will have a positive impact on overall market returns over the next decade, but the level of conviction varies sharply by age.

73% of millennials say AI will have a positive impact on market returns over the next 10 years, the highest of any generation. 66% of Gen Z agree.
Baby boomers are the most skeptical: 46% expect a positive impact, while 15% say the impact will be negative, the highest negative reading of any generation.
21% of Gen X and 22% of baby boomers say AI's gains are already priced into the market, compared to 15% of millennials.

Loading paragraph...

Looking specifically at AI-related stocks, more than half of investors (56%) expect them to outperform the broader market over the next 10 years.

Millennials are again the most bullish: 64% expect AI stocks to outperform the market.
Gen Z follows at 59%, with Gen X at 50% and boomers at 41%.
Only about 8% of any generation expects AI stocks to underperform.

Loading paragraph...

What are the most common types of stocks owned by Gen Z and millennials?

Different generations are more likely to own different types of stocks. Here's how they break down:

Growth stocks are the most commonly held stock type overall (57%) and are the top pick for Gen Z (61%), millennials (59%), and Gen X (54%).
Gen Z and millennials are more bullish on value stocks (50% and 43%) than Gen X (33%) and baby boomers (31%), a possible sign that younger investors are hunting for bargain buys.
U.S. stocks and large-cap stocks become more popular with age: 50% of baby boomers hold U.S. stocks versus 35% of Gen Z.
Gen Z (16%) and millennials (11%) are more than twice as likely to hold speculative stocks, like penny stocks and/or meme stocks, as baby boomers (4%).
REITs are notably more popular with Gen Z (23%) and millennials (17%) than with baby boomers (6%).

Loading paragraph...

What are the most common sectors owned by investors by generation?

All generations agree that technology is the market sector most likely to deliver the best returns over the next 10 years. But what individual investors currently hold in their portfolios varies more by generation.

AI-related stocks are held by 74% of Gen Z and 70% of millennials, compared to 54% of Gen X and 41% of baby boomers, the largest generational gap of any sector in The Motley Fool’s survey.
Information technology is the top sector pick for best returns across all generations (29% overall), with baby boomers (40%) and Gen X (33%) most enthusiastic, and Gen Z (21%) the least. Some survey respondents may have selected AI-related stocks and not technology stocks despite significant overlap between the two.
Older investors are more likely to hold oil and gas stocks (17% of Gen X, 19% of baby boomers) and bank stocks (14% of Gen X, 18% of baby boomers) than younger investors.
Biotech and medical device stocks show a clear age gradient: 5% of Gen Z versus 14% of baby boomers hold them.

Loading paragraph...

Loading infogram...

Thematic stocks, a category that includes AI, clean energy, and biotech, are held by more baby boomers (12%) and Gen X (10%) than Gen Z (5%) or millennials (7%), even though younger investors hold more AI stocks. That gap may reflect younger investors' preference for broad equity investments, like growth stocks and index funds, as their primary strategy rather than narrowly themed bets.

Loading paragraph...

The factors individual investors care most about when deciding whether to buy a stock

Across all generations, fundamentals drive stock-buying decisions. Competitive advantage and understanding the company and industry trends rank as the most important factor overall (mean rank 4.6 out of 10), followed closely by trust in company leadership (4.6) and dividend payments (4.7). Social media sources rank last.

Analysis from AI tools like ChatGPT ranks 7th out of 10 factors overall, but the generational gap is notable. Gen Z rates AI recommendations 5.6, making it their 6th-most-important factor. Baby boomers rank it last among meaningful inputs, at 6.7.
TikTok creators are the least influential factor for every generation but particularly for Gen X (7.5) and baby boomers (7.8).
Paid advisory services are more important to older investors: Baby boomers rank them 5.1 versus 5.5 for Gen Z.
Free investing websites and blogs are ranked similarly across all generations (5.4–5.5), suggesting no generational edge there.

Loading paragraph...

How frequently do Gen Z and millennials make stock trades?

Younger investors trade far more actively than their older counterparts.

47% of Gen Z and 40% of millennials trade (versus invest) at least once a week, compared to 23% of Gen X and 15% of baby boomers.
Daily trading is most common among Gen Z (14%) and millennials (13%), about twice the rate of Gen X (7%) and nearly 3 times baby boomers (5%).
Baby boomers are by far the most hands-off: 58% trade less than once a month, compared to 39% of Gen X, 18% of millennials, and just 12% of Gen Z.

Day trading comes with real costs: transaction fees, short-term capital gains taxes, and high-pressure situations that can result in emotional trading decisions disconnected from fundamentals. Research consistently shows that most active traders underperform a simple buy-and-hold, long-term investing strategy over time.

Loading paragraph...

What are Gen Z's and millennials' primary investment goals?

Retirement dominates the goals of older investors but is far less central for younger ones. Gen Z and millennials are more focused on building wealth and buying a home.

Retirement savings or retirement income is the primary investment goal for 71% of baby boomers and 58% of Gen X but only 41% of millennials and 34% of Gen Z.
Long-term wealth building/capital appreciation is the top investment goal for Gen Z (20%) and second for millennials (18%).
Buying a home is the third-most-common investment goal for Gen Z (8%) and millennials (5%) but is cited by just 3% of Gen X and 1% of baby boomers.
FIRE – which stands for financial independence retire early – is most popular with Gen X (5%) but garners similar interest across all generations.

Loading paragraph...

How popular are dividend stocks among Gen Z and millennial investors?

Across all generations, dividend stocks are a meaningful part of most investment portfolios. Between 14% and 16% of individual investors in each generation allocate more than half their portfolio to dividend stocks. For the majority, dividend stocks make up less than half of their holdings.

Loading paragraph...

Why do Gen Z and millennials invest in dividend stocks?

Gen Z and millennials invest in dividend stocks primarily for their long-term compounding potential and reliable passive income. Baby boomers are more likely to reinvest dividends for growth.

Long-term compounding is the top reason Gen Z (56%) and millennials (48%) cite for owning dividend stocks, versus 27% of baby boomers.
Reliable income is roughly equally valued across generations (43–51%).
Reinvesting dividends for growth is far more common among baby boomers (49%) than Gen Z (18%) or millennials (27%).
That divide is reflected in behavior: 70% of baby boomers reinvest their dividends automatically, compared to 53% of Gen X, 38% of millennials, and just 23% of Gen Z.

Loading paragraph...

What do Gen Z and millennial investors do with their dividends?

Gen Z and millennials are much more likely to spend dividend income than reinvest it, while baby boomers overwhelmingly let it compound.

Is dividend investing a new side hustle?

More than half of Gen Z (57%) and millennials (53%) view dividend investing as a side hustle or alternative to gig work, a framing that resonates far less with Gen X (31%) and baby boomers (16%). That could represent a generational rebranding of passive income, from investing strategy to side gig, that could make dividend investing even more attractive to younger investors.

Loading paragraph...

Loading infogram...

Where do Gen Z and millennials learn about dividend investing?

For Gen Z and millennials, learning about dividend investing starts where they're already spending their time: on social media.

YouTube is the top source of dividend investing education for Gen Z (67%) and millennials (57%) but is used by just 28% of Gen X and 15% of baby boomers.
TikTok is the second-most-turned-to education source for dividend investing for Gen Z (47%) but drops sharply among older generations, just 12% of Gen X and 4% of baby boomers use it.
Reddit is used for dividend investing education by 29% of Gen Z and 24% of millennials versus 10% of Gen X and 3% of baby boomers.
Baby boomers are more than twice as likely as Gen Z to use a financial advisor for dividend investing advice (53% versus 24%).
Friends and family are a top source to learn about dividend investing across all generations (38% to 40%).

Loading paragraph...

Loading infogram...

What do Gen Z and millennials think is the best investment portfolio size?

How many stocks belong in an investment portfolio has long been debated, and different generations have different opinions.

Gen Z and millennials are more likely than Gen X and baby boomers to think a portfolio can be considered high performing with 10 or fewer stocks.
39% of Gen Z versus 28% of baby boomers think 1 to 5 stocks can comprise a high-performing portfolio, showing younger investors are more comfortable with concentrated bets.
5% of Gen Z and 15% of boomers think a high-performing portfolio needs more than 20 stocks, highlighting that older investors place greater value on diversification.

Loading paragraph...

Loading infogram...

The right portfolio size depends on the investor. A smaller, concentrated portfolio is easier to manage and gives your best ideas more room to matter, but it also means a single bad pick can significantly drag down returns. A larger, diversified portfolio reduces that company-specific risk and smooths out volatility but requires more time to maintain and can dilute your strongest convictions. Index funds can offer an easy path to broad diversification with minimal fees.

The Motley Fool recommends owning at least 25 stocks across a handful of industries. But the right number ultimately comes down to an investor's risk tolerance and how closely they want to follow their holdings.

AI enthusiasm, dividend side hustles, and social media: How Gen Z and millennials are investing differently

Younger investors have their own set of experiences that are informing their stock picks, and artificial intelligence is central to their outlook. Two-thirds of Gen Z and millennials own AI stocks, most plan to hold them for the long term, and the majority expect AI to outperform the S&P 500 over the next decade.

The generational investing divide extends beyond AI. Younger investors trade – not invest – more frequently, view dividend investing as a side hustle they can learn about on YouTube and TikTok, and are less focused on retirement savings than on building wealth and buying a home.

Still, the generations aren't entirely different. Fundamentals, such as competitive advantage, trust in leadership, and company financials, drive stock-buying decisions across all age groups. Tech is the consensus top sector to invest in. And friends and family remain trusted sources of investing advice regardless of generation.

Methodology

The Motley Fool surveyed 2,000 American adults currently invested in stocks, ETFs, index funds, or equity mutual funds via Pollfish on March 3, 2026. Results were post-stratified by age and gender to generate nationally representative data. Pollfish employs organic random device engagement (ORDE) sampling, recruiting respondents through a randomized invitation process across digital platforms to minimize selection bias.

Loading paragraph...

About the Author

Jack Caporal is the Research Director for The Motley Fool and Motley Fool Money. Jack leads efforts to identify and analyze trends shaping investing and personal financial decisions across the United States. His research has appeared in thousands of media outlets including Harvard Business Review, The New York Times, Bloomberg, and CNBC, and has been cited in congressional testimony. He previously covered business and economic trends as a reporter and policy analyst in Washington, D.C. He serves as Chair of the Trade Policy Committee at the World Trade Center in Denver, Colorado. He holds a B.A. degree in International Relations with a concentration in International Economics from Michigan State University.

TMFJackCap

The Motley Fool has a disclosure policy.

Gen Z Versus Millennial Investing Trends: What Is Each Generation Buying in 2026?

The Motley Fool's Generational Investing Trends Survey reveals the surprising rise of Gen Z dividend investors and more.

Key Points

Gen Z and millennials are all-in on AI stocks

Millennials are the most bullish generation on AI's market impact

What are the most common types of stocks owned by Gen Z and millennials?

What are the most common sectors owned by investors by generation?

The factors individual investors care most about when deciding whether to buy a stock

How frequently do Gen Z and millennials make stock trades?

What are Gen Z's and millennials' primary investment goals?

How popular are dividend stocks among Gen Z and millennial investors?

Why do Gen Z and millennials invest in dividend stocks?

What do Gen Z and millennial investors do with their dividends?

Is dividend investing a new side hustle?

Where do Gen Z and millennials learn about dividend investing?

What do Gen Z and millennials think is the best investment portfolio size?

AI enthusiasm, dividend side hustles, and social media: How Gen Z and millennials are investing differently

Methodology

About the Author

Read Next

Premium Investing Services

Gen Z and millennials are all-in on AI stocks

Millennials are the most bullish generation on AI's market impact

What are the most common types of stocks owned by Gen Z and millennials?

What are the most common sectors owned by investors by generation?

The factors individual investors care most about when deciding whether to buy a stock

How frequently do Gen Z and millennials make stock trades?

What are Gen Z's and millennials' primary investment goals?

How popular are dividend stocks among Gen Z and millennial investors?

Why do Gen Z and millennials invest in dividend stocks?

Is dividend investing a new side hustle?

Where do Gen Z and millennials learn about dividend investing?

What do Gen Z and millennials think is the best investment portfolio size?

AI enthusiasm, dividend side hustles, and social media: How Gen Z and millennials are investing differently

Methodology