Business Relationships Can Deliver Solid Dividends to Shareholders
by | Posted 7.12.2013 | Post Comment (No Comments)

We live in a service- oriented economy. As a result, a large portion of the economic output is based upon purchases of services, rather than the purchases of pre-fabricated tangible products. Using an example from everyday life, a haircut is a service. Many people living in small communities across the United States go to a barber shop or a hair salon every few weeks or so. After a few months of trial and error, consumers generally tend to find a place to have their hair cut and stick with it. The service provider lures in the customer with quality of service, and builds a long-term relationship of repeat purchases that might last for years if not decades. So why should dividend investors care about haircuts and services?

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