Andrew D Ellis
1 min readJan 3, 2024

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Any asset that I purchase has to pay me for the privilege of getting my money. That "payment" can be in the form of a dividend, in which case I continue to own the asset -- like a golden goose. Alternatively, I am just as happy with price appreciation, in which event I can sell off some or all of that asset and capture the appreciation. Comparatively, dividend income is more certain than capital appreciation -- ergo, wealth can be generated with less stress. Of course, there are assets which, over time (i.e., not monthly to month or even year to year), have risen in price consistently and pay a dividend. (Take a look at the forty year price appreciation record of Sherwin Williams Paints on Yahoo Finance to see what I mean.) All of the foregoing brings me back to my primary point: if a company wants me to buy their stock, I need to have a reason to think/believe that they are going to pay me one way or another.

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