More often than not, it seems, these deals are motivated by the desire to
boost shareholder return — frequently to the detriment of the customer experience.
French foods group Danone is to sell a $ 1.9 billion stake in Japanese company Yakult in its latest initiative to
boost shareholder returns.
The world's biggest miner BHP Billiton reported a 25 percent rise in underlying half - year profit on Tuesday, helped by robust metals prices, and said its focus remains on cutting debt and
boosting shareholder returns.
If drillers are smart, they'll see the way investors responded to Anadarko's buyback and begin making plans to
boost shareholder returns instead of just production.
After escaping Kraft Heinz's $ 143 billion bid, the Marmite maker said it will focus on
boosting shareholder return.
All in all, dividends do tend to
boost shareholder returns.
Both AGNC and NLY use a substantial amount of leverage to
boost shareholder returns.
If you're invested in stocks, low interest rates typically boost the stock market because cheap capital allows companies to boost their bottom lines, which in turn
boosts shareholder returns.
Ackman buys stock in companies he deems undervalued, particularly in the retail, restaurant and real estate industries, and urges changes he says will
boost shareholder returns.
Not exact matches
The tech company has also
returned an additional $ 151 billion to
shareholders since its fiscal year 2013 in the form of share buybacks — a move that has reduced share count and
boosted earnings per share by about 21 % in the past four years, according to Silverblatt.
The restructuring has led it to exit a raft of non-core operations, such as its business in Africa and units in Asia, in a bid to simplify its structure and
boost returns to
shareholders.
Corporations will
boost sales and keep margins elevated allowing managements to both invest for growth and
return cash to
shareholders via buybacks and dividends.
Acquiring other brands from food companies under pressure from uppity
shareholders could be one way of
boosting returns.
In March, Qualcomm Inc, under pressure from hedge fund Jana Partners, agreed to
boost its program to purchase $ 10 billion of its shares over the next 12 months; the company already had an existing $ 7.8 billion buyback program and a commitment to
return three quarters of its free cash flow to
shareholders.
Unwilling to make the same mistakes as his predecessors, who raised prices to
boost margins and
shareholder returns, chief executive Brad Banducci has made it clear Woolworths will continue to invest «materially» to underpin sustainable growth in supermarkets after decimating profits by sinking more than $ 1 billion into prices and service in 2016 and 2017.
If companies can not find a better way of spending its net income to
boost overall
returns than paying out dividends for the owners, then it makes senses for them to pay out dividends so that
shareholders can take the money and invest in elsewhere.
The key point is that, rather than diluting performance by investing cash flows from historic high -
return projects into newer low -
return projects, companies might improve
returns and lower risk for
shareholders by
boosting dividends and buying back shares.
A strategy focusing on lower cost projects, stricter capital discipline and increased distribution to
shareholders may
boost group
returns and lower risk.