The writer recently visited a hospital and picked up a copy of Hospital News and read an interesting story – the discussion was about a patient with Alzheimer’s with a tendency to become anxious and reckless. The solution imposed and likely looking at staff to patient ratios, the patient was constrained. The lady had been at the hospital for some time and it became standard practice. The nurse being new to the job, accepted the practice; but being new was never completely satisfied this was the best solution. Eventually, through getting to know the lady, the restraints were removed and  this to a better quality of life for the patient.

Linking to dividend producing stocks, you may have bought growth funds because it was the accepted practice to buy growth stocks. That is not a bad thing, it is just the evidence points the best way to increase your portfolio is to ensure it is heavily weighted in dividend stocks. These stocks have two methods to increase the value of your portfolio – the dividends and if the dividends are sustained over a number of years, the price of the stock will go upwards too. Management of companies is a tough thing to do, one of the methods which investors can keep management from making too many mistakes is to insist on a continuing dividend flow. If they do this part right, the other parts should be okay. This type of solution will be good for the investor.

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