Dividends and Time Horizon

We all have a vision of what time means. If you are around teenagers, the time lines seem short; if you are in the 40’s the time to retirement seems long. If you are in your retirement years, time seems to pick up and the days goes by quickly.

When you invest, the ideal is for a long term horizon, ensuring along the way income is continually received, with the added bonus of a capital gain. One tired and true method is to look at whether the companies you are investing in have been paying dividends for a few years. If they have, you get to project what their outlook should be. For example, if it is a pipeline – will people be needing the services. If the answer is yes, the group of stocks should be high on your list to accumulate and hold. As your projections come true, along with the continuing dividends, invariably the stock price will rise. You will have done well. Investing can be simple.

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

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