This week I am mulling over something - a lot of investors expect growth and seek out companies they think will be growing. If the company posts earnings or forcasts that show less growth than the market expected, the stock goes down.
Another type of investor is looking for income. They want a stock that generally posts a dividend and are less concerned with the price of the stock going up and down. If it goes up, great, but they really want that quarterly divendend.
I was thinking about this as an analogy to the world population. The population of some countries is growing, and some countries are slowing down. In a consumer driven economy that population growth represents more sales opportunities. Would a stable or slowing population be more like dividend paying economy rather than a growth economy?
Unchecked growth, whether in a company or population, probably isn't good in the long run. On the other hand, we want to see the quality of life and bottom line numbers getting better. I think its a game of balance between growth and income.