Today in the mail, I received a business magazine with a list of top 1,000 companies. Not all are are public, but many are. While the names of the top 20 tend to stay the same, there is change. The change is the one of the important elements of dividend companies, something is always changing and the companies have to adapt to the changes in order to retain their ability to pay dividends. Just because you invest in the companies, it does not mean you can go to the hammock and sleep away the days. Your focus changes to asking is your company protecting their marketshare (and maybe even growing it). If the strategies are not working, your dividend is at risk and it maybe time to determine which companies are meeting the challenge. Fortunately, the research needed does not have to be overnight, it can be monthly or quarterly, you still have opportunity to sleep in the hammock just not all summmer. Similar to all stocks, you still need to do some due diligence.
One of the things a company listing does teach you, is even though the biggest companies revenue may go up and down, they are still making money and from a dividend perspective that is a good thing.
There are always more questions than answers, till the next time – to raising questions