Monday, May 31, 2010

Pay me to wait

I usually don't talk much about investing in a particular way.  However I am posting about a blog posting which I found interesting.  For refernce I haven't verified the analysis.  It seems like there is more than meets the eye from the chart but the chart is pretty compelling if it is even partially true.

I have been investing a lot of dividend paying stocks recently.  Even though I keep losing money in a lot of bets the dividends just keep on coming.  I will likely continue to invest mostly in this way.  Partially because it is simplier from a longer term perspective.  As long as the company can afford its dividend you are being paid to wait, which is helpful.  I have said that there is a tough problem with companies that don't give dividends yet have huge margins, they tend to invest poorly.  Anyway.  I liked the graph so I posted this.

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