My investment approach for long term growth is primarily based on dividend growth methodology. Where do my dividends get paid from? It is the combination of profitability, cash flow, income, prudent money management, etc. With the current state of economy in United States (and other parts of the world) majority of the corporations are facing negative growth. In such a scenario where will I get my dividends or dividend growth from? Dividend growth investing is about a long haul like running a marathon (instead of short dash to finish line). However, in these challenging environments dividend investors need to look at the macro economic scenario and understand how it will play out in long haul over a period of next 10 years to 20 years. Let me begin with my thoughts on some of the key dooms day scenario being widely discussed in this economic environment. continue reading rest of the article….




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Nationalization of Banks?
Business media is filled with discussion, hype, arguments, counter arguments, and for and against nationalization of US banking system (or perhaps selective banks?). It is very natural for individual investors to get overwhelmed and confused about the business environment. I do not know whether government will nationalize or not. I cannot predict it. I am not an economist, not a banker, not financial engineer, not an accountant, and hence certainly not from Wall Street. Even then I believe that government’s involvement is not a good idea. And here is why? continue reading rest of the article….