By providing a lift to a stock's price, buybacks can
increase total shareholder return to target levels, resulting in more stock awards for executives.
EQT's compensation structure encourages managers to make decisions that will
increase total shareholder return, EQT spokesperson Natalie Cox said in a statement.
Not exact matches
For each CEO's tenure, the researchers calculated three metrics: the country - adjusted
total shareholder return (including dividends reinvested), which offsets any
increase in
return that's attributable merely to an improvement in the local stock market; the industry - adjusted
total shareholder return (including dividends reinvested), which offsets any
increase that results from rising fortunes in the overall industry; and change in market capitalization (adjusted for dividends, share issues, and share repurchases), measured in inflation - adjusted U.S. dollars.
With Caterpillar's history of
increasing its dividend, its
shareholders can look forward to a substantial bump in the
total return of the stock for as long as the shares are owned.
In addition to the 7.6 % capital appreciation (Closing Annualized ROR), long - term
shareholders of Franklin Resources Inc would have received an additional $ 27,243.83 in dividends that
increased their
total return from 8.3 % to 7.6 % per annum.
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.
In addition to the 5.5 % capital appreciation (Closing Annualized ROR), long - term
shareholders of General Mills Inc would have received an additional $ 50,404.63 in dividends that
increased their
total return from 5.5 % to 7 % per annum.
Dividends contributed the majority of the
return for
shareholders of this company, which
increased the
total annualized rate of
return to a respectable 3.4 % per annum.
Company size
increase is usually good, but what
shareholders are mostly interested in is the
total return they receive as being the
shareholder, and empire - building is usually not the most profitable path.
Some companies may let share dilution occur, while other companies may reduce
total shares to
increase overall
shareholder returns.