There is an ad for a new luxury car which starts off as Preconceived Notions …they tell you what is? whether or not it is true? In this case the car company is launching a new luxury car and trying to target those that believe an well established automobile similar to a Rolls Royce would have the same prestige as their new luxury car. Of the positive side, all car brands started at some point in time, all one time they were the new kid on the block. In terms of preconceived notions we all have them about different products and services, particularly if we do not use them very often. We also have preconceived notions about people and take only a few minutes or less to judge them, and since we all do it, it is okay. There is nothing wrong with having preconceived notions as long as we are able to adapt when new facts come forth.

Linking to dividend producing stocks, when you started investing you had a preconceived notion of investing to make money. It turns out being safe and secure is often the best method to achieve good returns. By investing in profitable companies which consistently pay dividends, you wealth grows by the dividends and the capital gains. It is also possible to buy a company that becomes an overnight billion dollar company, but you likely can count on your hands or even one hand the number of companies which did this. Then ask yourself how many stocks are traded on the exchanges and divide the two, the number would be a low percentage, actually a very low percentage. Thus the easier strategy is to buy companies that continually pay dividends which seems to be dull and boring but profitable companies are active In the mergers and acquisition category, for they can afford to buy the competitors or diversify their businesses. As long as the companies maintain their profitability and their dividends, you can stick with dull and boring, for in the long term you will have increased your wealth and that is what investing is about.

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