Dividends and National Holidays

This week in the US and Canada are days to celebrate their countries founding, and with dividend companies one question is should I diversify among the many companies in the world or stay national. Every country with a stock exchange has some excellent dividend paying companies. The easy answer is if you have an easy method to keep in contact with the country(ies) you are investing in, invest in those ones. If you are essentially a local person, stay more localized.

All investing requires follow up, the easier the better. Although we can access news from around the globe on the internet, if you do not access information regularly, then it is better to stay local and let the company go international. In general, in order for dividend companies to keep paying dividends, revenue streams have to be diversified. If you diversify by country of head operations, are you really getting a diversified portfolio for the companies will have operations beyond its borders.

One thing the eeconomic meltdown taught us, is how connected we all are, even if we did not think we were. Consider how many financial instiutions around the world bought American mortgage back securities that needed to be written off.

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

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