Dividends and the Empty Gas Gauge

The writer was driving the car and the other passenger remarked the light light to tell you to fill the gas tank was on. The car was almost home, and there was little danger in running out, so the car kept driving. As the gas gage slowly started to embrace the Empty sign, the passenger eyes were focused on the gage rather than the view from the car. To transition to risk – reward and dividends.

Which person do you see yourself as, the driver or the passenger? The passenger in the world of investments stays very close to dividend paying stocks as that is their risk tolerance. The driver calculated the risk reward and expected lower gas prices in the next town (traditionally the prices are 5 cents lower). and was willing to take slightly higher risk on that one occasion. Understanding most of the time the car is refueled when it hits the 1/4 or 1/3 empty. If you consistently go near the empty sign of the gas tank, you are are candidate for growth stocks. If you consistently fill the tank well before the empty, you should stay with dividend paying stocks.

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

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