Dividends and Super Storm

Many conversations for very good reasons involve the weather and no doubt one of the most used application on a smart phone is the weather and the long range forecast. Depending on where you live, a topic that draws attention is hurricanes. They are very interesting and even more interesting if you do not live within the hurricane belt. One of the greatest storms was Hurricane Sandy and in a book called Super Storm – 9 Days Inside Hurricane Sandy by Kathryn Miles, Dutton, NY, 2014 the author goes to the people who try to understand hurricanes and predict their outcomes. Hurricane Sandy broke all the rules and was the biggest Hurricane seen  it was so big anything in its path was going to be damaged. One of the reasons it became so big, weather patterns changed and the necessary warm and cold weather to feed the hurricane materialized allowing for the hurricane to get bigger. Being large it was slow moving which was great to be glued to the TV and watch it, but the damage it caused was considerable. The storm surges and the power of nature was something to behold; as you look to the sea be aware of the power of nature.

Linking to dividend paying stocks, to forecast hurricanes a great deal of information is gathered to be analyzed, it also take people to understand or have a gut feel for what is happening and if the hurricane is normal or a rule breaker. Similarly it choosing the best stock to pick, there is an increasing array of information to gather and analyze. This blog suggests the best method to make money is to try to make it simple and eliminate companies. For example, invest in profitable companies, which means you miss the unprofitable ones; invest in dividend paying stocks or you miss the non dividend paying stocks. By limiting yourself to profitable dividend paying stocks, you will have the greatest indicators of when to move your money – if they are not profitable or the dividend is being reduced. The overwhelming majority of companies will give plenty of hints along the way if operations are no longer profitable or if the dividend is to be cut. There is a great deal of information which can be analyzed, to make a decision try to keep the reasons as simple as possible.

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

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