Dividends and Bicycles

In many cities and towns, municipal authorities have invested money in bike trails along the rivers and lakes, not surprisingly people use them. The other day the writer took a ride along the water and noticed among other things the different types of bicycles. There were bicycles were of different makes and travelling at varying speeds – some were leisurely going, some had destinations to go to and moved quicker and others just were in a never ending race.

To use tha analogy – the speed cyclists were growth stocks trying to gain marketshare with their new and great idea.
The more leisurely – such as the writer’s are the dividend stocks. While the growth stocks are noted, the effort is to maintain a dominate marketshare in order to pay the dividend. The pace is a little slower than growth stocks, but dividend paying companies must use all the resources they can.

Analogies are great for relating, to simplify what is a complex subject and every year gets more even more complex. Whatever subject you relate to, bring investing into that realm and it will help you understand.

There are always more questions than answers, till the next time – to raising questions

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