Dividends and Federal Reserve Report June 6, 2013

According to the Federal Reserve Board’s Statistical Report released on June 6th one of the highlights was household net worth increased. In the first quarter those who owned stocks and mutual funds saw a rise of $1.5 trillion and those who owned real estate saw a rise of $784 billion. This was good news as investments are rising and household debt is decreasing. After 4 years, US housing prices are rising but stocks did better. Understanding there is wide disparity and some stocks did not do as well as the real estate. Similarly  some neighbourhoods did better than others, ideally if you own real estate and live there, there first concern should be living and being good neighbours. In the neighbourhood the author lives in the annual get together was held on the weekend, which is another method to ensuring a good neighbourhood.

Linking to dividend paying stocks, because stocks which pay dividends are profitable ones, the share price tends to go up more when the market in general increases. When the prices go down, because investors paid for the dividends first and growth second the prices tend to go down less. If you paid for growth or expecting the price of the shares to up and the growth does not happen, the stock price will fall. For now higher expectations can be seen.

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

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