Dividends and Perspective at the Art Gallery

Once in a while, the writer walks through the local Art Gallery not because of a deep appreciation of the work hanging on the walls, but looking for different perspectives. Those with a deep appreciation can view paintings in terms of how it was painted, the writer has limited knowledge. But what can be seen is the approach or what the painter sees. Most of the time it is the same thing, but once in a while there is something different.

Bringing this thought to dividend stocks, when companies begin to pay dividends they are on the radar of those who look for dividend paying stocks. It tends to mean the companies have reached a stage where growth is not the dominant aspect to the business, but maintaining or growing from where they are becomes important. The companies have reached the stage where they can pay dividends and unless something changes dramatically their stock price is not going to raise 8 times anymore. The price may double or even triple over a period of time.

One of many perspectives is not that companies have embraced whatever new technology there is, but how are they using it to reach and provide more to customer; to ensure the dividend is protected. Even if the company has a dominant market share, there is always competition and change nipping at its heals. Even us dividend buyers have to keep a watch on our companies.

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

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