Banks

When the price of bank shares drops, it is very difficult to resist from buy them.   Earlier, I topped up WBC at $28.11 and then near close, another small parcel at $28.24.

I have noticed that lately when banks (ANZ and WBC) paid their dividends, it was much higher than interest received from cash deposits.  So even if the share price falls but if the dividend (which may also fall) is still higher  than interest from cash deposits, who cares when I am not withdrawing either!

My father who only went to school for 2 years in tumultuous China in the early Twentieth Century, advocated buying shares in companies that give reliable and consistent dividends.  Of course, this means the dividend has to be from continual profits over those years.  And even if profit diminishes due to new regulations or falling world economy, who cares as long as the profit is still higher than other companies... and higher than interest from cash deposits!