Show DIVIDENDS AND MARKET PRICE s j those who become interested in mining stocks for the first time often ask for a stock that is paying large dividends and selling at a low price and that is absolutely safe such an investor requires impossible conditions we know of no mining stock paying large dividends and selling at a low price that is absolutely safe there are many mining stocks that offer tempting investments because they pay large dividends and because they are selling at a very low price when the interest rate represented by th dividends is concerned A stock that is absolutely safe or as safe as can possibly be under ordinary business conditions usually pays small dividends or rather a low rate of interest on tho the investment A stock that pays large dividends and sells at a low price is dangerous one has to watch it very carefully because often the price will advance suddenly and on the posting of the dividend will decline so that the investor would lose on the market price four or five times the amount of the dividend A mining investment except in some particular cases of well developed copper mines should pay at least a monthly rate of ofa 2 per cent interest on the investment if it pays from 3 per cent to 6 per cent on the investment the prospective buyer should ask the reason the time to buy many of the mining stocks is early in the history of the organization of the company silver king stock sold a number of years ago at considerably less than 5 per share the same may be said of daly west ontario and in fact of many of the large dividend payers sioux con was selling at 25 cents per share less than a year ago it is not very long ago that colorado sold at 15 cents per share deck beck tunnel was once on the market at 5 cents per share these are only a few examples which may be given of low prices for stocks which have become good dividend payers I 1 and which are now selling 0 or r have sold at very great advances over the early purchase price usually the time to sell mining milling stocks in order to be safe is whenever one has a very large profit A person will never lose and money by taking profits |