Dividend generators

As I move closer to 60, it is time to ponder what stocks to hold.  A long time ago, a wise old man told me that I should only buy stocks that give consistent, large and incremental dividends.  Why?  It means it is a profitable business.  This chap only went to school for 2 years and only had newspapers to guide him.  I should also add that the dividends must be paid out of profit, not the capital nor debt.

These few days, I have been getting dividend announcements by the blue chip stocks.  While I had been accumulating resource stocks, I have rarely sold off any of my bank stocks or big miners.  Of late, the speculative shares have not done well even when good announcements are made.  Stocks like SIR and HOR are just lucky to confirm their impression of good mineralization.  Most drilling results turn out mediocre or nothing even with nearology to back up their hype.

Some very cheap stocks are not desirable by the market so they wallow.  A good example is VKA which has one of the cheapest EV/Oz of Au valuations.

I have a couple more years to ponder but in the meantime, I will have to start shifting to more stable stocks... with real and good dividends.