Dividends and Pink Umbrellas

The writer was reading a book called Buried Treasurer (Travels Through the Jewel Box) by Victoria Finlay, Sceptre 2006. The concept of the book is looking at your jewelry box and asking where do those gems come from? what are the stories? why are they considered important?

Within the book are chapters on rubies and diamonds and 8 other stones. Besides history and geology of the stones there are some wonderful images. For example if everyone knows the value of the stones are partially determined by the light the stone displays; how would you ensure that light is used to best advantage. The sellers of rubies in the Mogok Valley put up pink umbrellas to sell their rubies under; your local diamond retailer uses fluoresce lights for you to see your stones. Ideally your realtor wishes to show you homes in the daytime when the natural sunlight shows your the property the best.

To bridge to dividend producing stocks – everyone is all industries tries to display their goods and services in the best natural light, for every good and service has some sort of flaw. The difference with dividend producing stocks as the dividend goes on, the stock price will move up and down. The belief and reality is over the long term, with stocks that pay dividends on a year to year basis, the total return will be higher than buying growth stocks.

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

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