Dividends and the Ukraine

Yesterday, Russia troops moved from across the border to parts of the Ukraine as the government and civil society was beginning to break down. Russia took a part of the country which gives it access to a year port and where its Navy is located. There were many reasons why it did what it did, including protecting the gas pipeline, however Ukraine being an independent country, they were not suppose to and thus there are potential international ramifications.

Linking to dividend paying stocks, if the stocks you own have operations around the world which is good as it helps to diversify the revenues of the company, invariably something will happen. This time it is one country operating in another country without their permission; other times it may be the weather; or it will be something else  – stuff happens. The key is for the stocks you own, either they have sufficient reserves to ride out the storm as things return to normal or have other operations which continue to generate the needed revenues. It is easier for being an owner or management if the company is well diversified and when things happen, the company can plan and execute resources to capitalize on competitors who do not have the same abilities.

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

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