Research Will Help Identify Investment-worthy Companies

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Posted: Jun 20, 2017 12:01 AM
Research Will Help Identify Investment-worthy Companies

DEAR BRUCE: In a recent column, you referred to "well-established, large firms that have continuously been paying dividends for a good many years and showing 2 percent to 4 percent growth a year on average." My question is, would you consider Vanguard a good example of that? -- E.R.

DEAR E.R.: Unfortunately, I cannot endorse any specific company, and that includes the one you mentioned in your letter. You have to take a look at each individual company you're considering investing in carefully. Look at the history for the last 20 years or more, and then you can make a decision.

I know that's not the answer you wanted, but it's the only one I can give you in good conscience.

DEAR BRUCE: My wife and I are retired, over 65, with all debts paid off, including our home. We have held a credit score averaging about 825 for some time now, as reported by my credit card company. We do not carry over credit card balances. If I make a major purchase (auto, vacation), I can pay in cash outside of any IRA withdrawal.

How can we actively take advantage of our excellent credit score in our situation? What advantages could I be receiving that I don't know about through not actively using credit. -- W.J.

DEAR W.J.: It sounds to me like you have things well in hand. As to having some advantages with a credit score of 825, I don't know what that might be.

Mine is in the same range, but I haven't used credit for a good many years, and I can't see any reason in the foreseeable future for having to use it. Therefore, I am delighted that my credit score is in the 800s, as you should be, too. But in terms of profiting from it, I don't know any legitimate way to do that.

(Send questions to bruce@brucewilliams.com. Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided.)

(The Bruce Williams Radio Show can now be heard 24/7 via iTunes and at www.taeradio.com. It is also available at www.brucewilliams.com.)