Forgone capital expenditure can be used to
increase shareholder cash returns — buybacks if management believes that the company is undervalued, dividends if not.
Not exact matches
Hilton CEO Chris Nasetta says tax reform will drive hotel room demand and
increase cash flow for
shareholders.
The CEOs tend to be unassuming folk who ignore management trends to concentrate on the nuts and bolts of running a business — focusing on earnings per share instead of worrying about top - line growth, for example, and working to preserve
cash flow instead of
increasing earnings to build
shareholder value.
Meanwhile, corporations can take advantage of cheap credit to pay down debt and accumulate
cash, some of which makes its way to
shareholders through
increased dividends.
Apple said it will
increase the program by returning $ 200 billion in
cash to its
shareholder by the end of March 2017.
That
increases the shares outstanding and dilutes the stake of existing
shareholders, since shares issued by the company through the exercise of options are not sold in exchange for
cash at fair market value but are exercised at a discount.
In a note, analyst Michael Senno wrote that «as an owner of sports cable networks and teams, we believe that MSG is well positioned to capitalize on the
increasing value of premium sports content, which should result in AOCF and free
cash flow growth above its peers and, combined with incremental leverage, lead to solid
shareholder returns.»
«For the remainder of 2014 we will focus on our multi-layered growth strategy, which incorporates same - store sales growth, leverage from higher sales, deployment of free
cash flow,
increasing royalty revenues and new drive - in development to build
shareholder value,» Sonic CEO Cliff Hudson said in a statement.
On June 10 SoftBank
increased its bid to $ 21.6 billion from $ 20.1 billion and raised the
cash component of the deal for
shareholders by $ 4.5 billion, trumping Dish's bid and gaining support from Sprint's second biggest
shareholder Paulson & Co. which had previously said it preferred Dish's bid.
«We also continued to invest in our commercialization capabilities, while returning significant
cash to our
shareholders — including a 16 percent dividend
increase.
SoftBank will
increase its
cash injection to Sprint
shareholders to $ 4.5 billion, bringing the total
cash consideration to $ 16.5 billion, Sprint said in a separate statement.
We used this
cash to further reduce net debt and
increase returns to
shareholders through higher dividends,» Chief Executive Andrew Mackenzie said in a statement.
So
increasing focus on
shareholder - friendly corporate governance, the rising clout of activist investors and the robust market for corporate control are all manifestations of the fact that
shareholders want big companies to give them back their
cash, and that companies are increasingly willing to do so.
PDC's strategy is simple:
increase shareholder value through the growth of reserves, production, and per share
cash flow and earnings, while focusing on safe and efficient operations, environmental stewardship and community outreach.
At such a cheap valuation, VIAB can use its $ 3 billion in annual free
cash flow to buyback stock, retiring shares at a undervalued price, thereby
increasing the overall value for remaining
shareholders.
Given our ability to consistently generate strong
cash flows, today we announced an
increase in our dividend of $ 0.50 per share payable on August 1, 2012, to
shareholders of record at July 10, 2012.
Many factors could cause BlackBerry's actual results, performance or achievements to differ materially from those expressed or implied by the forward - looking statements, including, without limitation: BlackBerry's ability to enhance its current products and services, or develop new products and services in a timely manner or at competitive prices, including risks related to new product introductions; risks related to BlackBerry's ability to mitigate the impact of the anticipated decline in BlackBerry's infrastructure access fees on its consolidated revenue by developing an integrated services and software offering; intense competition, rapid change and significant strategic alliances within BlackBerry's industry; BlackBerry's reliance on carrier partners and distributors; risks associated with BlackBerry's foreign operations, including risks related to recent political and economic developments in Venezuela and the impact of foreign currency restrictions; risks relating to network disruptions and other business interruptions, including costs, potential liabilities, lost revenues and reputational damage associated with service interruptions; risks related to BlackBerry's ability to implement and to realize the anticipated benefits of its CORE program; BlackBerry's ability to maintain or
increase its
cash balance; security risks; BlackBerry's ability to attract and retain key personnel; risks related to intellectual property rights; BlackBerry's ability to expand and manage BlackBerry ® World ™; risks related to the collection, storage, transmission, use and disclosure of confidential and personal information; BlackBerry's ability to manage inventory and asset risk; BlackBerry's reliance on suppliers of functional components for its products and risks relating to its supply chain; BlackBerry's ability to obtain rights to use software or components supplied by third parties; BlackBerry's ability to successfully maintain and enhance its brand; risks related to government regulations, including regulations relating to encryption technology; BlackBerry's ability to continue to adapt to recent board and management changes and headcount reductions; reliance on strategic alliances with third - party network infrastructure developers, software platform vendors and service platform vendors; BlackBerry's reliance on third - party manufacturers; potential defects and vulnerabilities in BlackBerry's products; risks related to litigation, including litigation claims arising from BlackBerry's practice of providing forward - looking guidance; potential charges relating to the impairment of intangible assets recorded on BlackBerry's balance sheet; risks as a result of actions of activist
shareholders; government regulation of wireless spectrum and radio frequencies; risks related to economic and geopolitical conditions; risks associated with acquisitions; foreign exchange risks; and difficulties in forecasting BlackBerry's financial results given the rapid technological changes, evolving industry standards, intense competition and short product life cycles that characterize the wireless communications industry.
We have
increased our dividends by 100 % over the last 3 years, which speaks to the consistent
cash flow we generate and our intent to return more capital to
shareholders through dividends.
This
increasing cash flow should provide Johnson & Johnson
shareholders with more dividend
increases.
When we see a company that generates
increasing amounts of
cash each year, and has a history of paying out more
cash to their
shareholders, we get excited.
To be explicit on this: when the earnings yield (the inverse of a P / E ratio) is higher than the return on
cash, it is beneficial to
shareholders in
increasing EPS.
Some companies generate substantially more
cash per share than they pay out, which could hint that a dividend
increase is on deck for
shareholders.
History has revealed that some of the best performing stocks during the previous decades have been those that shelled out ever -
increasing cash to
shareholders in the form of dividends.
Areas where corporations have put this
cash to work include: continued dividend
increases and share buybacks, which return capital back to
shareholders; ongoing investment and capital expenditures as well as research and development; and
increasing productivity and lowering cost structures.
But Bega Cheese, WCB's single biggest
shareholder with an 18 per cent stake, upped the stakes on Thursday by
increasing its
cash and scrip offer and declaring it final and unconditional.
Under the proposed Scheme, Coal & Allied
shareholders will receive
cash consideration of A$ 125 per share, a A$ 3
increase when compared to consideration of A$ 122 per share announced on 8 August 2011.
2017 was generally kind to U.S.
shareholders of domestic and international equities, but long - term U.S. Treasury Inflation - Protected Securities (TIPS) rates drifted downward,
increasing the present value of future inflation - adjusted
cash flows discounted to the TIPS curve.
They've
increase the amount that
shareholders are getting in the form of
cash flow.
These banks are now able to move forward with their plans to return
cash to
shareholders, either in the form of stock buybacks or
increasing dividends.
When the business uses
cash flows in a way that appeases
shareholders the value of the company
increases on a per - share basis.
In Corning's 2014 annual statement they confirmed their commitment to returning
cash to
shareholders, citing their recent 20 % dividend
increase and $ 1.5 billion share - repurchase program.
If there is a high confidence that a company will be there in 20 - 30 years, that
increases the chances that it will be hopefully earning more over those years and rewarding that
shareholder with more
cash.
A long streak of regular dividend
increases shows a company which is prospering, as evidenced by the higher amounts of
cash it sends to
shareholders.
That leaves plenty of
cash to
increase the dividend or fund buy - back programs to reward
shareholders.
It seems these companies are able to return
cash to
shareholders (via dividend raises) on average in the 8 - 12 % range without share buybacks and in 11 - 15 % range with (total
shareholder yield) outside of any additional
increase in the actual price per share.
When we see a company that generates
increasing amounts of
cash each year, and has a history of paying out more
cash to their
shareholders, we get excited.
Mutual funds often have to sell holdings that have
increased in value to raise
cash to meet
shareholder redemptions.
There is much debate about whether companies should
increase shareholder value by repurchasing their shares or returning excess
cash to
shareholders by way of dividends.
I routinely scan for dividend
increases because that tells me the company has the
cash necessary to pay
shareholders a rising stream of
cash, and management is confident about future prospects.
Even with little to no future growth, these companies should continue to produce high levels of free
cash flow over time which will allow them to
increase share buybacks and / or dividends, thus compounding value for
shareholders over time.
In fact, on July 16 the company issued another press release updating the amount of «
cash available to
shareholders» at the end of 2Q; it had
increased to $ 45.3 million from the $ 31.7 million on the balance sheet at the end of Q1.
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.
He believes the best dividend stocks for high income possess characteristics such as healthy payout ratios, conservative balance sheets, reliable
cash flows, recession - resistant products, and a track record of consistently rewarding
shareholders with dividend
increases.
Under this theory, firms can reduce agency conflicts between managers and
shareholders by reducing excess
cash on hand, and by obligating managers to make continuous payouts in the form of
increased dividends and interest payments to creditors.
The
cash flow for each fiscal year is equal to the net
increase in net assets from capital share transactions plus the net decrease in net assets from distributions to
shareholders.
Presuming that, management should now place an
increasing emphasis on capital allocation: i) Surplus
cash continues to build (the company has minimal debt), and ii) unless we see a dramatic turn - around, the stagnant revenue & collapsing margins of the Electronic division (Grosvenor Technology) are worth more sold off, with the proceeds returned to
shareholders (or reinvested in Asset Protection).
Walsh warned
shareholders and employees of the painful restructuring, cost reduction & rationalisation still to come, and then began systematically ticking each action item off his list: i) After one last kitchen sink loss in 2012 of EUR 116 million (mostly goodwill impairment), One51 actually recorded a net profit in 2013 for the first time in 7 years, ii) free
cash flow
increased from just EUR 1.1 million in 2011 to 15.4 million in 2013, iii) almost EUR 100 million was raised in two years from the sale of the plastic extrusion business, the disposal of stakes in Island Renewable Energy, Thirdforce, IFG, and (most significantly) Irish Continental Group, in addition to a substantial 2013 capital redemption from NTR, and iv) net debt (exc.
If a company has too much spare
cash, it may consider investing the surplus funds in new ventures and in case company is out of investment options it may be prudent to return the excess funds to
shareholders in the form of
increased dividend payments.
Companies continue to
increase their
shareholders» returns through buybacks and
cash dividends.
Listed below are select companies that have recently elected to raise their payout and yield by
increasing their
cash dividends to
shareholders: