Hello and welcome! In this blog I’m going to talk about dividends, and specifically, dividend companies from the Tel Aviv Stock Exchange in Israel.
Why dividends? Because investing in companies that distribute dividends is for me the only logical reason why I would invest in a company. If I open a business and invest money in that business, the goal is to make money from the business and transfer back that money from the business to me. Why should this be different with stocks? When I buy a stock I’m buying a fraction of a company, so I expect that if the company makes money, some of that money should come back to me. Things are obviusly more complicatet than this, but that’s the main idea.
When a company does not distribute dividends, the only way to get return on the stock of the company is to sell the stock, and this has two problems: 1) if it is a good company, why sell the stock, and 2) most important, the price of the stock is not set by the company but by the market. And the market can behave very irrationally in the short term, so there is a real risk that the price I get paid for my stock is lower than my expectation.
Why Israel? Well, this is where I live, and the internet is already crowded with very good blogs that talk about dividend investing (this is my favorite one), but not any that talks specifically about the companies listed in the Tel Aviv Stock Exchange. There are great opportunities to be found in this marked, and I think the language barrier (learning Hebrew is not something I would do just to read financial statements :-)) makes it difficult for investors to find these opportunities.
So here it goes, hope you enjoy the ride
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