If you were to look through the companies listed on the Stock Exchange, you will see many companies. Most do not pay dividends, they are listed on the exchange for growth reasons – the expectation their stock rises because of something they do, lands they own, all sorts of reasons. If you own them, you may get richer faster.
The ones that pay dividends are the ones, I am interested in. Their stock prices do go up and down, but generally not to the degree the stocks that do not pay a dividend. The reason why dividend stockds tend not to go down as much is they pay a dividend or a yield to you. If you own them you will get richer slower.

The companies that pay dividends tend to be market leaders, are in industries where they are either regulated more or in the wonderful world of capitalism (those with less competition), for good reasons. If we take an example of a pipeline company that transports oil. There are a few of them – they pay dividends. As the public sentiment moves towards the environment, the public does not want to see more of these companies for they provide a highly regulated important service. Highly regulated service includes a barrier to entry for others, which means the pipeline companies earn enough money (plus some) to continue to pay dividends into the future.

The point of the above is when you examine dividend stocks, you will see some of the best companies on the exchange and that is a great starting point.

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