One of the prime reasons why Dividends stocks are important is those that pay dividends have positive cash flow. Every business needs cash flow to stay in existence and if it does not it, the business is not going to survive. Mature companies made money for a period of years, they are reasonably well estabished, can afford to pay their owners part of their cash flow. It is summer, and the writer sent time reading a book about Sam Zell. Mr. Zell and Equity Properties has been the largest apartment, office, mobile home operator in the US with holdings around the world. Real estate investing is based on cash flow – rent or lease the property and cash flows in the accounts to pay for the mortgage, the operations and management. If you are a sports fan – Mr. Zell owns a piece of the White Sox, Bulls and one time held a piece of the Cubs.

Investing in dividend stocks is about the cash flow – does the business continue to generate the money to pay the dividends?

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