Last week, JP Morgan Chase (a large bank headquartered in New York) reported a profitable quarter of business, at the same time they also reported one of their divisions had lost over $ 5 billion in the same quarter. If the division had not lost money, JP Morgan would have reported an excellent quarter. even though the company lost $ 5 billions the dividend was still paid. JP Morgan is a great example of why buying a divdend paying company is a great idea.
There are thousands of companies on the stock exchanges, most do not pay divideneds. All of those companies have a management hoping to increase revenues during their business plans – some will succeed, many will not. To narrow down the field from the thousands, concentrate on the ones paying dividends first. If there is a long history you can narrow the list even further. From the list, although you wish all the companies would do well, ask if there was no growth or limited growth in their plans, would the dividends still be paid? By this time, you will have a shorter list and then it is a judgement call. History has shown many of those companies on your list besides paying dividends, over time the stock price tends to increase.

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