In many people’s lives after marriage, the two biggest investments are the home to live in and the car. In an ideal world, if you choose a good area to live in and it stays good for the next 50 years plus, then the house will gain value. In terms of the car, not long after you come home with it, the value begins to go down quickly. However if  you have a 20 year plus version of the same car and it is it good working order, the value rises. For cars that are mass marketed to thousands, at 20 years they will not be many left because most were not designed to last that long. The older version is more valuable because to a wide selection of the general public, they have memories of the car. It can be dates, independence, trips, making decisions, family, friends, and everything in between. Those memories translate into rising prices.

Linking to dividend stocks – the issue is over time the cars became valuable.With dividend paying stocks they also grow in value over time, with the extra benefit of regular payments to your bank account or to buy more shares. Over time as the company continues to make money and pay dividends, the compounding affect takes place and your shares increase in value. As you do your search for good companies to invest in, the number of years of payment of dividends allows you to see the company is profitable and continues to provide the needed goods and services it provides at a healthy margin.

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