Yesterday, the winds brought the southern air to the area where my home is located which made it seem like a summer day. Summer days are for spending more time outside – can take the slow road home, enjoy a patio or a walk in the park. While in the local park, the squirrels were active, partly from the dogs chasing them (but never catching them), and partly from jumping between the trees. When you consider a tree, the thicker part of a branch is close to the trunk and as the branch goes out, it is thinner. In order for the squirrel to jump between the trees, it has to go to the thin part and leap to another seemingly thin part of a branch. Not sure how it knows which branch to go on and when not to go on a branch, but the squirrels did not fall.

Linking to dividend producing stocks, similar to the squirrels leaping between the trees, there is risk. There are not things that you may not know, however there are also many things you can learn first. If you focus on the things you do know, your decision is much easier. How does the company make money?  Has the company consistently made money for a number of years? Is the dividend stable or increasing? What competitive edge does the company have that allows it to make money? In our economy there is always an alternative, what are some of them? Having answered those questions, which will lead to others and it will help ensure when you jump  you will land safely.

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