One of the most important elements of investing is the risk factor – what risk are you willing to take to make a expected return. If you are near the mythical average person, you do not mind one or two days a year of high excitement, but for the most part, you live a relatively “boring” lifestyle. Noting there is a lot of good in your lifestyle, for societies to function, most of us spend many of our days within the boundaries of our lifestyle.
Having said the above, our investments should tend to reflect our lifestyles for the type we are looking for are high degree of safety, reasonably consistent returns, easy to manage, and a small degree of some excitement.

Dividends provide all the above – given the quality of the companies paying divdidends there is a high degree of safety; given dividends are consistent – paid every year; the companies are well managed and have a solid market share of their industry; the excitement is not everything is perfect.

The world turns which means something goes on every day – this year European debt has been highlighted, last spring was the Arab spring; and China’s economy is slowing. There are factors in the world which affects all investments. There is always something affecting investments every day or every month, but for the most part holders of dividends shares do not have to do projections to determine what could or might happen to their investments for as long as the dividend is paid, it is okay, if not sell.

Dividends provide all the above – given the quality of the companies paying divdidends there is a high degree of safety; given dividends are consistent – paid every year; the companies are well managed and have a solid market share of their industry; the excitement is not everything is perfect, however at the end of the day, holders can close their eyes and get a good night’s rest to prepare for another day and that is important.

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