Dividends and Passive Profitable Investing

There is a wonderful advertisement of someone enjoying the backyard hammock for the person does not have to worry about their investments. It is a half truth, but we are wish it was a full truth. On the stock exchange there are many companies trying to make money, the reality is most of the exchange do not – they are selling hope. Hope is something we all need, strive for, but it does not always pay the bills. There is a small group of companies who consistently make money and pay dividends, they also exist on hope that the world will not change too much each year. If the world does not change too much, then the companies will make money. In order to pay a dividend, companies have to generate extra cash, some of you may have seen the TV show the Shark Tank and one of the guest Kevin O’Leary talks about “show me the money or cash flow”. If you think similar to Kevin, you will tend to stick to companies that pay dividends. Dividends that come every year and perhaps, just perhaps, you can be lying in the hammock.

The first aspect of passive profitable investing is start with dividend paying companies.

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

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