Dividends and Why do birds fly south?

Recently attended a horticulture meeting about plants and animals preparing for the winter. In the northeast, the leaves have changed and with the November rains the leaves will fall and the weather will turn colder. For people in the Northeast – we all look towards going south for the sun and warmth. Birds fly south, but not necessarily because of the weather. The real reason why birds go south is follow the food. For every type of animal and birds, if you look at what they eat or what they like to eat, you will see the food change and the animals and birds simply follow the food.

Linking to dividend paying stocks,  there usually are simple reasons for many questions but finding the simple answer is not as simple until you know the answer. In investment, if the number one real is try not to lose money, then investing in profitable companies who can pay a dividend and ideally raise the dividend on annual basis. This should be simple, but it is complex because the investment industry loves growth and large organizations will have smaller growth than small companies. Consistent growth is better than quick growth if the growth is profitable growth. For smaller companies, there is hope to gain market share and then increase prices to make the company profitable. Watch the smaller companies but put most of your assets in profitable companies.

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

Leave a comment