The other day while riding my bike, the lights turned red and a Ferrari and a Porsche pulled up beside me. Those two cars are high performance vehicles with quick acceleration. On the city streets, they are not that practical, but people buy them anyways. As the light in the other direction turned red, my bike was first to go because there is a gap between the red and green lights. However the drivers of the two cars looked at one another and then they zipped by my bike and were down the road in seconds. Fortunately there was other traffic on the road and the two cars had to slow down for no accidents were caused. My bike made it to its destination faster than the alternatives that were available to me on the lovely summer evening, but slower than the two cars, unless there was lots of traffic and traffic lights down the street.

Linking to dividend paying stocks, there are many alternatives, in this case when the Ferrari and  Porsche pulled up, these cars can be seen as  growth stocks. It is possible to have short term profits, however in the case of the cars roaring down the street, their progression was quickly stopped by slower moving vehicles or there was risk involved with the great speed. My bike going at a slower pace, covered the same ground and as an added bonus, the weather was lovely. If you buy dividend paying stocks, you will likely get to the point a little slower, unless the market has been beaten up the sector and then the stocks can have great gains (see US Bank stocks) and a dividend as an added kicker. When you buy beaten down dividend stocks, always start with the quality ones for more return less risk.

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