Sentences with phrase «for returning cash to shareholders»

The basic premise behind the strategy is that companies have three options for returning cash to shareholders — dividends, share buybacks, and paying down debt.

Now share buybacks aren't necessarily a bad thing, and in fact are Warren Buffett's preferred method for returning cash to shareholders — as opposed to dividends — because they give management more flexibility.

Not exact matches

Buying back stock is, for example, Warren Buffett's preferred way of returning cash to shareholders (rather than paying a dividend).

Today, Apple got credit for its bountiful buyback plans, but there are tons of other companies returning huge slugs of cash to their shareholders and I think you'll miss out if you ignore them,» the «Mad Money» host concluded.

Corporations will boost sales and keep margins elevated allowing managements to both invest for growth and return cash to shareholders via buybacks and dividends.

(Reuters)- Murphy Oil Corp (MUR.N) said it will spin off its smaller retail gasoline business in the United States, review options for other assets, pay a special dividend and buy back shares as it seeks to return more cash to shareholders.

For instance, a percentage of GE executive bonuses depend on the company returning a certain amount of cash to shareholders.

Peltz also proposed cutting other «excess» costs, adding debt, adopting a more shareholder - friendly policy for distributing cash from CyclicalCo / CashCo, prioritizing high returns on invested capital for initiatives at GrowthCo, and introducing more shareholder - friendly governance, including tighter alignment between executive compensation and returns to shareholders.

Activist investors and institutional shareholders are increasingly forcing publicly held companies to return more cash to shareholders — and that's good for the economy.

If you want companies to return less money to shareholders, then you should be able to defend an alternative choice for what they should do instead with their cash.

Let's further assume that the Nikkei companies in the aggregate have a net cash balance equal to 30 % of market capitalization and decide to return all the net cash to shareholders as a special dividend, the implied P / E multiple for the Nikkei would drop from 8x to 5x.

And with a payout ratio of 47.8 %, you're looking at what's basically a «perfect balance» between retaining earnings for company growth and returning cash to shareholders.

As one of the most diversified healthcare companies with 12 megabrands, including Johnson's, Band - Aid, and Neutrogena, that are sold across 60 countries, J&J looks well poised to grow earnings, cash flows, and shareholder returns for years to come.

The book is a series of case studies that describes how a small number of CEOs have used cash generative businesses as platforms to drive massive returns for shareholders by directing excess cash opportunistically between large stock buybacks, special dividends and acquisitions of other businesses.

That's business as usual for Texas Instruments, which aims to return essentially 100 % of its free cash flows directly to shareholders.

«2014 was a great year for Marriott Vacations Worldwide, with adjusted EBITDA of $ 200 million, adjusted free cash flow of nearly $ 300 million and over $ 210 million of capital returned to our shareholders.

Stronger iPhone prices and hints by Apple Inc on Thursday that it could return more than half of its $ 285 billion in cash to shareholders eased concerns among investors, even as the world's biggest technology company gave a disappointing revenue outlook for the current quarter.

A vow to return 6.75 bln euros to shareholders is handy: Vivendi had been too vague about plans for its huge cash pile.

«We recognize activist investors often advocate for firms to return excess cash to shareholders via buybacks,» Goldman's chief strategist David J. Kostin and others said in a note to clients.

The finding appears to extend to the macroeconomic level as well — shareholders in the larger economy got a much bigger bang for their buck when cash was returned to them as dividends than when it was deployed into capital expenditure.

But the interesting thing is that in the eyes of many investors, Apple's quarterly iPhone sales numbers seem to matter less now than they have for years — at least relative to how much cash Apple is generating and returning to shareholders through dividends and stock buybacks.

«The Company will effectively become a well capitalised cash shell with approximately # 18 million that can be utilised for new opportunities in line with our proposed investing policy or returned to shareholders.»

Naturally, shareholders would prefer to reinvest a business's earnings into more ownership of a business rather than see the cash sit in the company's bank accounts for a paltry.5 % annual return.

Dividends are the most widely understood method for companies to return cash to shareholders, but share buybacks and debt reduction are also methods for returning cash.

He also sees opportunities in these sectors for capital allocation that can enhance shareholder returns, either by using excess free cash flow to buy back stock, or acquire competitors and operate the combined company more efficiently.

Clearly, the large cash holdings of banks and the need to generate adequate returns for shareholders is encouraging risk taking.

And with a payout ratio of 47.8 %, you're looking at what's basically a «perfect balance» between retaining earnings for company growth and returning cash to shareholders.

Is that a good value for shareholders, maybe not if a company burns through all it's cash only to have the share price return to normalcy.

For example, at the end of 2016, General Dynamics had a $ 60 billion backlog representing nearly two years worth of sales, helping to ensure relatively predictable cash flow that can be returned to shareholders in the form of buybacks and quickly growing dividends.

All very well, I confess I've been through all that myself professionally, but always felt frustrated at having giant hoards of Cash on hand to invest — in an ideal world, I knew the best thing for shareholders and Return on Equity was to have zero Cash and just come in each day and draw down / pay down on a Debt / CP facility.

In other words don't count on that cash being returned to shareholders or even invested in passive investments (private or public equity) for the benefit of shareholders; A liquidation valuation really isn't of interest here as Glassbridge is set to be an ongoing business and I can see an operating cash bleed for 3 - 5 years depending on how long it takes the company to attract enough AUM to cover operating (read staffing) costs.

For shareholders looking to close the value gap the best outcome, of course, would be for management to return any cash from a refinancing in the form of a dividend or share buybaFor shareholders looking to close the value gap the best outcome, of course, would be for management to return any cash from a refinancing in the form of a dividend or share buybafor management to return any cash from a refinancing in the form of a dividend or share buyback.

The strong growth and cash flow from Humira, the continued development of their drug pipeline, and management's commitment to returning capital to shareholders through dividends has increased our estimate of fair value for the company and changed our holding period from one year to multiple years.

Dividend payout ratio is the method by which you can know what portion of net income a company is returning to its shareholders, and how much retaining for growth, debt pay off and cash reserve.

The crux of the idea is that it is a company with a strong brand name and large market share that produces high ROIC and stable free cash flow and has a majority owner committed to returning that cash flow to shareholders, all for a single digit multiple.

As it stands, KGP / shareholders effectively earn nothing from this cash — but if this cash, for example, were returned tomorrow morning to shareholders, there's no reason to believe that would negatively affect Kingspan's P / S multiple (or its financial strength), and shareholders would have an additional 212 M cash to re-invest (or invest elsewhere).

[Of course, in general, this & other potential risks offer more compelling reasons for excess cash to be returned to shareholders].

If a company's financially strong, gross cash these days is a non-productive asset that could be returned to shareholders, or used for an earnings - enhancing acquisition.

Time for a step - change... Overall, it's a pretty stable core business, so management needs to start milking it for cash to return to shareholders (via dividends / buy - backs), or else accelerate growth by ramping up its leverage & acquisition pipeline / spending (more acquisitions, bigger acquisitions, or both...)-- at this point, I'd still prefer a bet on the latter.

All these look good for Kingspan, so if they utilised their «surplus» cash on an acquisition (for example), I see no risk / impairment to the business (& no impact on their usual working capital cycle)-- and obviously the return for shareholders should be far superior to an effective zero rate on idle cash!

Cash & Share Buyback / Tenders: Consider the scale of the potential cash generation implied above, and Donegal's equally large discount to intrinsic value... A strategy of shrinking their outstanding share count is often the simplest & best way for companies to utilize cash, return capital & enhance shareholder vaCash & Share Buyback / Tenders: Consider the scale of the potential cash generation implied above, and Donegal's equally large discount to intrinsic value... A strategy of shrinking their outstanding share count is often the simplest & best way for companies to utilize cash, return capital & enhance shareholder vacash generation implied above, and Donegal's equally large discount to intrinsic value... A strategy of shrinking their outstanding share count is often the simplest & best way for companies to utilize cash, return capital & enhance shareholder vacash, return capital & enhance shareholder value.

For example, a company with excess cash of $ 3 billion that shareholders do not expect to have returned for four years is worth just over $ 2 billion today at 10 % discount raFor example, a company with excess cash of $ 3 billion that shareholders do not expect to have returned for four years is worth just over $ 2 billion today at 10 % discount rafor four years is worth just over $ 2 billion today at 10 % discount rate.

We've been following AVGN (see archived posts here) for exactly the reason that Pollack identifies: it's a net cash stock (i.e. it's trading at less than the value of its cash after deducting all liabilities) and specialist biotechnology activist fund BVF has been pushing it to liquidate and return its cash to shareholders.

For instance, Agrium's expansion at its flagship Vanscoy potash operation will eventually add 40 % to its capacity, and the completion of the $ 2 billion project means more free cash flow will be available to return to shareholders.

February marked a great start of the year for dividend growth investors as companies lay out the financial plans for the year and start returning more cash to shareholders.

They can return money to shareholders, reinvest for growth, pay off debt, or increase cash balances.

Oftentimes this is justified for reasons that go beyond maximizing cash flow — lots of companies would do better to return profits to shareholders than pursue management fantasies for which the company is fundamentally unsuited — but I'm not sure Qualcomm falls in that category.

Paul Ingrassia, managing director for Citigroup Global Markets Inc., estimates of the $ 85 billion in REIT deals closed in 2005 and 2006, returning $ 30 billion in cash to shareholders.