Wednesday, September 14, 2011

Let your stocks do the work.

In class recently, the topic of discussion has centered on interest rates. This article, by Brett Arends, shows us another way that a confident, and experienced investor can capitalize on historically low interest rates. The challenge is finding a stable or growing investment that has a high dividend yield. Although he talks specifically about paying your mortgage through dividends, i believe the underlying message is the last sentence of the article. " Any project where the return on invested capital beats the cost of capital has a positive net present value." And that positive net present value is achieved through recognizing, and utilizing stocks with high dividends. I like this article a lot, because the average college student is not incredibly informed about investing. This article shows us how cool investing can be, and how letting your money do the work for you is one of the smartest things that we can do.

1 comment:

  1. I find this article very interesting. It talks about capitalizing on low interest rates. But I find it ironic because socialism through government regulated money doesn't have any value, except by decree, and along with it, laws that are unable to keep up with change, and ever more rapidly contradict themselves, for lack of principal, and these things give rise to dictatorship, under which the only one thing you can count on is the authority will keep its word, and that word will change at will, and all you have will be worth nothing!

    On the other side the choice is, acknowledge humpty dumpty is in fact broken, and no matter what anyone does, all the kings minions, and trillions cannot put humpty together again ... no matter how much anyone wants to make believe multi Trillions of debt is able to be paid ... it isn't! and while Humpty dumpty is a fairy tale, it has its moral based in unrecoverable economic collapse. It is a tale of absolute consequence it...

    Its lesson was passed down lest we forget the reality of the moral to its story ...

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