In various parts of the newspapers, editors use fillers to fill the papers. One such filler in the general media was about itching powder. The example illustrates wonderfully the dividend paying stocks advantage. The story is the owner of The Famous Joke and Trick Shop in Hull, England bought up or has a monopoly on the world’s supply of E Series Itching Powder. If there is an E Series there must have or are others, the E Series among itching powder followers is the best one and with the formula lost, they are not making more of it. The price of the powder has fetched over $ 100 for a tenth of a gram on eBay In the world of commerce, there are many opportunities.
Asides from the jokes, the example shows if a company has a solid market share or near monopoly and they do not abuse it, chances are good the company will continue to have a high market share. Given the market share and good margins, the dividends you receive will be paid for number of years, which from an economic point of view is good.
There are always more questions than answers, till next time – to raising questions