Dividends paying companies, unlike growth companies are non sexy and that is the way investors like it. What do I mean by this statement – the sexy segment at the moment is the smart phone or iphones. There is high demand, many people are moving to buy them however the problem for an investor is margins are low, and unless the users use in a increasing amount of data, revenue growth is going to slow down. Yes, money is still to be made, but it is a tough competitive capitalist market. The type of industry consumers love, but investors want to love. However in all parts of the economy, there are companies that consistently make money year after year, as long as reasonable decisions are made by management and the maintance of their facilities are done. These companies are not sexy to the consumer world, but to investors – a good margin, profitable business paying consistent dividends or ou!la!la!
There are always more questions than answers, till next time – to raising questions.