In the spring of the year, people think about home repair, because the weather is nicer and home repairs take time. Just about everyone can pick up a hammer, but just because you can pick up a hammer, does not make you a contractor. In my case, the one with knowledge and skills was my Dad, my skills are of a supporting nature. Watching the home repair TV channel, there was an example of a person seeing a wonderful ad, then spending thousands of dollars before realizing they were ripped off, and the TV contractor comes in and fixes everything. This was not an isolated example, many people do not do their homework first. If you were to invest in the market, you would look at a variety of companies and make a choice. In the TV case, the couple looked at only one company,considered the end result and made a decision. One thing the couple could have done is priced the products in the ad, was it believable? There maybe instances where it could have worked, but in this example it did not.

Linking to dividend paying stocks, one of the reasons why this blog likes this type of stock is in order to pay a dividend, the company will have existing products and services which are being sold and the company is making money from them. If you start with a profitable company, you limit the downside risk. With the attraction of paying a dividend, money will come back to you, whether you reinvest or whether you take the money in your account, the dividend also helps to limit your risk. A large part of investing is not losing your money, but actually making money. Dividend stocks help you do that.

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