Dividends and the World Series

In the US, two professional baseball teams  (Detroit Tigers and San Francisco Giants) are playing for a championship called the World Series. The reason it is called the World Series is the first championship was sponsored by a newspaper called the New York World. Anytime the other newspapers talked about the championship they would have to advertise the New York World newspaper. It is one of the reasons why in sports, just about every sport has sponsorship and marketing related to it, The New York World newspaper eventually went out of business but the trophy was never changed for the name gave the illusion the world was playing for the cup. For many years it was not so, now with players from all over the world playing professional baseball, there is validity in the name of World Series, even though the teams are based in North America..

Linking to dividend paying stocks, when companies start out they tend to be focused on a small part of the economic cycle because they do not have the resources to do everything. Over time some companies will grow and evolve and become “world class” companies for they have diversified operations around the world. Most will not, for the desire and management skills are different as the companies grow in size and scope. All along the continuum of medium sized to large sized companies are companies that are public and pay dividends. Look beyond the name to the business model and if you like the model and it has paid dividends for a number of years, you will end up with championship dividends.

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

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