Dividends and Among the Truthers part 2

For non financial reading, the author picked up the book Among the Truthers by Jonathan Kay, HarperCollins, 2011. The book is a journey into the people who believe the government and others are trying to do cover up something or have a conspiracy theory. In many cases, there are some facts, just not all the facts that back up the theory. Yesterday the column discussed the public and goodwill, for this column, the similarities between growth stocks which offer a new product or service and conspiracy theories are loosely linked. Everyday something new and improved is offered, it may will be a great thing, but is it a good thing for the users? Does the new service or product deliver the needed internal investment return? or is within the accepted standards and built in barriers? By rejecting the new service or product is it a conspiracy against new products and services? maybe or maybe not.

Linking to dividend paying stocks, one method to figure out which is which is start with companies already paying dividends. If a company is paying dividends it is profitable.  When you start with these companies, it eliminates many of the others because they do not qualify. The companies may use the new technology, they many embrace parts of the new but within the realm of a profitable company. By investing in dividend paying companies you allow management to make decisions about which technology and processes to implement. If they are successful, the stock price rises. If the new technology is not so successful, the stock prices still rises, for the dividend is still paid.

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

Leave a comment