National Grid updates it's dividend policy

National Grid today announced it's new dividend policy which is to apply from the 1st April 2013. This will incorporate the final dividend due to go ex dividend in a few months time whereby the update states that an increase of around 4% to the dividend can be expected to reflect this growing dividend policy. The dividend policy states that for the foreseeable future the National Grid dividend will be increased by at least RPI inflation or so they aim. Whilst this dividend growth policy isn't earth shattering it is progressive and it's not going backwards. How long this policy will be in place for nobody can ever be certain. Currently yielding 5% however this is in my eyes a slow burner but is a reasonable dividend growth stock for the portfolio. As a guide the stock went ex dividend on the 1st June last year so can only assume it will be something similar this year. In accordance with my dividend policy plan I am holding this for the long term.

Why buy gold? Seemingly it's price is linked to USA public debt, that's why.

I recently read an article that showed a correlation over the years of the gold price and American public debt. Now with American debt at over $16 trillion dollars, they are at the debt ceiling whereby they can't borrow any more money until the debt ceiling is shifted again. So will they have to move it, they will if they want to spend more cash. So will the price of gold increase? It probably will if this direct correlation that you can see here continues, unless of course you think that America will be able to keep it's borrowing at the current levels. I'm not so sure, that's why I'm buying gold and gold stocks.