To an investor looking for high and fast capital gains, a company that makes a dividend payment is a low priority. However, for long term investors, research shows that such a payment is an important part of the overall return on investment.

Many of the biggest quoted companies have been paying an annual dividend every year for years. Part of the appeal of their shares as an investment, and part of the valuation in the price is this dividend policy and reliability.

As a general rule, the largest companies also make the largest and most secure dividend payment. Of course, this can never be true of every situation, but the bigger and more established businesses have the security and often the profits to cover a payment comfortably.

It may not be the most rewarding of actions for a company which has a track record of creating a high return on investment to pay funds out to shareholders. Unfortunately, there are too few businesses of this nature. Company management also recognize that by paying an annual dividend their company can potentially be called an income stock.

Income stocks are not necessarily viewed as 'sexy' in the market, but there is a wide array of mutual type funds that specifically invest in such companies. This of course opens the way to much larger institutional investment in a firm which in turn will help to underpin the price in the market. As big funds buy big holdings, the number of shares floating in the market will usually be reduced. By lowering liquidity, the share price will generally be assisted.

There are, of course, many investors that will purchase company stock and are specifically attracted by the payment of a dividend. These investors will use the payment to subsidize their income and as such, value stability.

It is for this reason that once company management has started paying an annual dividend, they will be fearful of ceasing payment. Should the income funds be forced to sell their holdings, the market price will almost certainly suffer. The bonuses and stock options of management are usually tied to this market price!

A private investor will almost certainly be required to pay income tax on any or all dividend income received. In many countries, some of this tax is deducted at source so that the dividend payment is reduced and the company sends money to the tax authorities on behalf of investors.

Stability of surety bond market, most of the people try to differentiate the meaning of issuance of surety bond with stability of surety bond market. Actually, the meaning and the concept of these two terms are totally different. They both are not one and same. The term issuance of surety bond refers to offering surety bond to the general public at different surety bond amount. While stability of surety bond market is that, attaining a strong position in the market and constantly retains the position in the market. This is known as stability of surety bond market. Generally in a surety bond market, it is difficult to ascertain the stability of the market. Fluctuation usually occurs either in issuance time or stability of surety bonds in the market. Changes are uncertain and it is difficult to ascertain when it occurs.

Market finds changes at any time. Nowadays, stability of surety bond market becomes constant in most of the time. Most of the people tend to purchase surety bond from the bonding company. Surety bonds are of different types and it is issued in separate bond forms and at preferable bond amount. As per the requirements and needs of the people, surety bonds are issued to the public. More number of companies is ready to issue surety bonds to the general public. This surety bonds are issued as per the rules and regulations of state and federal government of appropriate state. The principal guarantees the obligee that he will satisfies the words filled in the bond without any default.

Most of the industrial companies started issuing surety bond to all the members. Nowadays, surety bond is almost needed in every part of the world. Today bond becomes an important and essential part in every business formalities and at the same time, it legally compiles. This is the main reason for the stability of surety bond. The common reason for the issuance of surety bonds is to protect the public i.e. the obligee against any unforeseen act or default act of the principal. Most of the contractors enter in to a contract and does not complete the contract work as per the terms and conditions of the contract. When basic requirements are legally compiled in the market, then the position of the surety bond market will be constant.

Sometimes they obtain payment from the obligee and fail to perform the work and sometimes the principal fails to pay any payment to the subcontractors for the labor and material supplied. In all this cases, when surety bond is obtained from the principal, obligee can claim for the damages or losses occurred. To facilitate the general public, different kinds of surety bonds are issued by the bonding companies to his clients. From this point, we can come to know about the stability of surety bond in the market. Usually, stability of surety bond market is difficult to ascertain but know because of its firmness, it is easy to define the stability of the surety bond market. When stability of surety bond market is at higher position we can easily define that nowadays, more number of surety bonds are issued to the general public.

Stock markets love a consensus, but the oil market is one where consensus is very hard to achieve. There is much battle going about oil stocks. Some expect them to keep rising. Some expect them to peak soon. Others expect them to go down in the not-so near future, but down nevertheless. So, who to listen to?

Regarding oil stocks, a fundamental that has to be understood about the oil market is that is it driven by the market laws of demand and supply. Demand for oil is on the increase slope. Economic recovery by major world players means that there is more demand for oil. Other emerging big players, like China, are in more and more need of oil, thus raising demand. Countries like China, India and South Korea are also into building their own oil reserves in prediction for increased need in their own economy. This in turn, leads to an increase in demand. However, while supply of oil is still satisfactory, it is however to be noted that there is a tightening of supply on the market. Added to this is the fact that experts are remarking that oil supplies are dwindling. Combined with the other pertinent fact that there is an absence of supply growth, it all leads to imply that supply may not be able to meet the requirements of demand in the future.

Since the price mechanism is determined by these market laws, what happens when demand exceeds supply? Prices go up. Needless to say, increasing prices mean increase in value of oil stocks. This is why it is a good idea to hold on to those stocks.

A number of stock investment and stock broking companies provide advice and handling of stocks portfolios. These qualified companies thus look into the screening, research, and analysis needed to ensure the best oil investment for one’s portfolio and needs. However, in recent times, and especially due to the Internet, the layman can also attempt to invest on his own in oil stocks. Use of tools such as specialized web sites and business search trackers on the Web allow for screening and analysis of major market players. However, there is not much of a security net when one uses one’s own counsel for investment. Careful analysis and diligence is thus the key for these transactions.

Along For The Ride, Just Like A Flea On An Elephant’s Back.

In the share market I do not mind hitching a ride with strangers because I understand that I am not a partner in that business or company.

Thinking you are a “Partner” just because you own some shares in the company is one of the most “FATAL” beliefs in the market.

Accept who you are and the role you play and that “Like that flea on the elephant” you are just along for the ride.

This is not a time based strategy; it can be for one day, one week or a month or longer. It all depends on the length of the ride and the trend of the stock as long as it is heading upwards.

As soon as the trend finishes or changes direction (goes downwards or sideways) then it is time to jump off.

You then wait till the trend restarts upwards or look for another ride elsewhere.

The only thing YOU have control of when you buy a stock is your “Entry point and your Exit point.”

I hate to say it, but you have no control over anything else not even the time. Of course if you want to make a profit your timing has to be spot on but then again that is the exit point.

You alone are the only person that can turn a small loss into a bigger one.

A Bit of Homespun Philosophy

Everyone has the same access to information that we do or earlier. But it is the same information none the less. Except for insider information.

Share Price behaviour reflects around EMOTION. Today’s price is a continuation of yesterday’s crowd emotion.

Future share price behaviour is best analysed as a probability factor.

Risk is directly related to price and is manageable.

Most people avoid the mistakes they have made in the past. And a lot of people spend their lives playing it safe. Avoiding the lessons their past mistakes have shown them.

Excuses are really lies you tell yourself. Make an effort not an excuse.

It is not the information you have that is important. It is what you do with that information that counts.

The main reason for the difference in the final result is our individual response to Fear and Greed.

Ignore “Hot Tips” unless they are backed by your OWN independent analysis