Invariably many people will go out for meals, a number of years ago most of the meals went to independent or “mom and pop” stores meaning Mother and Father spent much of their time running the store. Now people often go to chain stores such as McDonald’s and many others. There are good decisions to eating at both, for remarkably few people complain about not getting good value at the chain stores. The “dive” tends to be a store that has not changed its interior design in years, but it is clean, and the food is very good. The rent was relatively inexpensive, meals are good and the restaurant knew who it is catering to.

Linking to dividend paying stocks, the restaurant was successful because it knew who it was catering to as it offered good value to the customers. When you buy a dividend paying stock, you should know who does the company cater to and what it offers. In this way as the company changes as companies invariably do, you will know if the company continues to offer good value. Buying a dividend producing stock does not mean the company does not change, what it does mean the companies has and keeps a market share where it offers both good value and high margins to continue to pay dividends.

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