Dividends and Cleaning the Sidewalks

On the way to work last week, one of the sidewalks of a building was being washed. There is construction both on the road and down the street on new buildings, which means the sidewalk gets dirty. The person had hosed down the sidewalk and now the water was travelling to its lowest point or following the rules of gravity. Sidewalks when they are built have a cut between the two pieces of concrete to allow the water to flow to the cuts and onto the street. After a time of use the sidewalk will not drain perfectly and water will collect in small pools waiting for the shoe of a pedestrian to move it along the way. The impact of the shoe will exploded the small pools and the water will move along to be drained or may even come back to wait for the next shoe. Often times there is concrete on one side or a building abutting against the sidewalk and occasionally there is grass to help absorb the water to lessen the volume of water going down the drains into the underground pipes which take the water to be cleaned and end up into the river or bay.

Linking to dividend paying stocks, a little thing is linked to something else which is linked to something else which keeps up alive. Relating the example to stocks, by buying a dividend paying stocks because it makes a profit and can afford to pay a dividend, that is linked to either a monopoly or maintaining a large enough market share to be profitable in all types of economies. If you own one of the these types of stocks, whether the price of the shares goes up or down, does not matter as much, as long as the company earns a profit and can pay its dividend. Your idea is to buy and hold the shares for a few years or longer, for the longer you own them the greater their value. Profitable stocks tend to trade a higher multiples than non profitable stocks.

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

Leave a comment