The other day, the writer went to a fall fair for agriculture to see the animals, the food, and to celebrate both. At one of the displays, understanding most displays are to encourage you to eat more, was the cheese display. One of the many recipe booklets was different methods to have a grilled cheese sandwich. If you were making a grilled cheese sandwich for a child, you would tend to make it relatively simple – butter the bread, cheese in the middle and cook it. The cheese melts and it is fun to eat (besides it is good for you, even better if you add some fruit). As an adult, there are a thousand choice of cheese, toppings, bread, etc. to enhance the sandwich. Many of them are very good to eat. We tend to forget what is simple is also effective.

Linking to dividend producing stocks – what is simple is effective. If you take a company that has been consistently made money and buy the shares on the expectation the pattern will continue. As an investor, you must decided how does the company consistently make money and will that continue? If you determine the money making will continue, then as a long term investment your work is done and you can enjoy the simple but effective pleasure of receiving dividends for a long time to come.

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