In one of the coffee commercials,  the actor portraying the founder says, something to the effect of: for the right taste, the beans have to be roasted for the correct time. Patience is important. The commercial goes on to talk about since the founder’s time, that part of the process has not changed. This process is similar to others in the drinks industry such as scotch and wine. Both products get better with aging and the older the scotch and wine is, the more valuable they become. (hopefully we see people the same way).

Linking to dividend paying stocks, the longer a company has paid dividends, the more valuable it is. There are always many challenges and changes in the marketplace, which means for a company to consistently pay dividends means it has a solid revenue base and hopefully a monopoly like position. The ability to pay dividends means the markets go up and down, but there tends to be floor price for the dividend paying  companies. When the price of the stock falls, the yield based on the dividend payments rises, which brings new buyers in to gain a great yield with very limited downside, thus sending the price of the stock up before the growth stocks rebound. When you buy quality, in the long run you are rewarded.

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