Dividends and Presidential Approach

US President Obama officially started his second term of office and it is a reasonable to look back on his first term. In a nutshell, the first time the President won the race he wond by being hopeful. For those of us who follow politics, the first campaign was a refreshing wonderful change that just maybe, future campaigns were also going to be hopeful ones. According to reports, 4 years ago while the President was dancing around Washington, the opposition side made a battle plan to say no or delay anything the President was recommending. The hopeful President starting using his political capital without being cynical enough, he truly believed the words from the campaign. Then he ran into the opposition and the delays and nos came fast and furious which ended up in the last Presidential election being more nasty and costly than any previous campaign. The hopeful political way was long gone, but the President won a second term. This time the President should know how Washington really works.

Linking to dividend producing stocks, unlike Washington politics, most of the time shareholders are hopeful because the company has a strong competitive stance from which it leaves the starting gate. This competitive stance has a near monopolistic structure but there is competition to keep the company on the straight and narrow. In Washington which is generally anything but hopeful, often times by doing nothing, it helps the most. By doing nothing, leaders do not talk about changing the laws which in some cases helps the dividend producing stocks. While, it is hoped President Obama does whatever drove him to become involved in politics in the first place, as the US economy begins to show more and more signs of recovery, it is also hoped he does not derail any of the stocks you may hold.

There are more questions than answers, till the next time – to raising questions

Leave a comment