A few weeks ago a conversation was partly overheard, it went to the effect did you hear about Sue? Remind me who is Sue? She is the ex girlfriend of the James. No, I think she is the ex girlfriend of a friend of James. No, I am sure she dated James. I believe she is a friend of friend of and now they are no longer dating. Do I know her? I not sure? Then why do I care?

The above conversation, what little was heard, remindd me of the Abbott and Costello skit “Who is on first” The two comics were taking baseball, but that is about all they were communicating to each other. Each time one gave a valid reference point, the other side was gaining transaction of the unknown. When you are looking at the all the investment decisions one could make, it is hard to pick one. This could be well the  reason why Warren Buffett suggested you keep your investments as simple as possible.

Linking to dividend paying stocks, the evidence highly suggests to have a consistent return buy companies which pay a dividend because you will receive two possible earnings stream. One is the dividend, the other the capital gain. Over time companies that are profitable and can pay dividends. these company stocks will rise. Given the great amount of choices, if you start with dividends it means you are starting with making money as well the risk level to make money stays low.

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