Dividends and Secret State

There are many Secret States but the title refers to a political thriller set in the UK in a four part series staring Gabriel Bryne as the Prime Minister and was produced in 2012. The show is based on a novel, but it starts with an industrial accident which the then Deputy Prime Minister investigates and the accident builds to something more highlighting various connections, trade offs, pressures, other people’s agenda, desire for power and what should be done and what is the right thing to do. It makes for a good viewing and you can take it for what it is.

One of the premises of the show is the link between big business and their agenda and the government – often the agenda are the same thing; sometimes they are different. In the 4 part show – there is a different outcome desired by the government but does the PM have the support of his party? In reality, the outcomes the PM was going after might have been a better solution, but were they implemented?

Linking to dividend paying stocks, a company that is profitable often supports the government in power because they have similar agendas and as long as the company continues to make a healthy profit it seemingly supports the existing government. Governments tend to think the company will support them in good and bad times, but companies have their own agenda. They want to make healthy profits in good times and have the governments support them – morally and financially in bad times. As a shareholder, your concern is policies which continue to allow the company to make money so it can share with you in the form of dividends.

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

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