A new movie is being released today – the latest James Bond movie or franchise. The movies over the years have proven to be money generators for the movie industry at large and the owners MGM/Columbia Pictures. This particular movie has the added attraction of being rated a very good movie, some of the other movies had one or two great scenes but not really a very good movie. The franchise will continue for years to come for every good franchise movie has an ending that will lead to the continuing saga. From a financial perspective, there are enough young and older folks who will go to the movie (including the writer) that the revenues from this franchise will ensure more movies are made.
Linking to dividend producing stocks – not every movie released by MGM will do well from a financial point of view, but there are enough including James Bond to ensure the company will continue to generate revenues. This is the key to dividend producing stocks as you do your research what is the reason or the business model for the company to continue to make money. If that reason continues to be a competitive advantage, you investment is good and it will do better than an index fund.
There are more questions than answers, till the next time – to raising questions.