All companies that earn money have a yield. If you buy a bond, there is a yield. When interest rates go down, for example from 4 % to 2 %, if you owned the bond at 4% your yield went up. If the interest rates go up and you own a 2% bond and rates go to 4%, your yield went down. It is the same process with dividend paying stocks – if and when the stock price goes down, the yield goes up. If and when the stock price goes up, the yield goes down. The words if and when indicate the action will happen for no stocks that pay a dividend has a static or flat stock price, there will be activity everyday. The questions is what is good? and when do you need to look at other variables?

A good measure is to compare the entire index of the exchange you are buying versus your stock. For example if the index is at a 3 % yield and your stock is yielding 6% or double, this is a signal to ask why is the stock price of the company you own going down, for the yield has gone up. That does not mean you have to sell, but you have to consider if something has changed in the reasons you own the company. It can be the company is dependent on higher commodity prices and prices have come down. If that is the case you ask when will the commodity prices go up? If the time period is short, then you may do nothing.

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