While
this increases shareholder return, it also means that REITs are often unable to finance expansion from operating income, and instead often must issue equity and debt for expansion and growth.
Another strategy that management can use to
increase shareholder returns for a mature company is through shareholder buybacks.
Not exact matches
Apple said it will
increase the program by
returning $ 200 billion in cash to its
shareholder by the end of March 2017.
She has
increased value for
shareholders, but while each share of HP held since she took over has
returned 120 % (inclusive of the separation and spinoffs), that lags the S&P 500's 149 %.
Waste management company Tox Free Solutions has posted a slight
increase in profit despite a dip in revenue, but has
increased its
return to
shareholders.
Buffett's annual letter to
shareholders, released today, speaks of the Coke holding, in a section describing dividend
increases that he thinks will be materializing and helping out Berkshire's
returns.
In that time,
shareholders earned a 500 percent
return, market cap
increased from $ 700 million to $ 10 billion, and client assets reached $ 280 billion.
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.»
«We also continued to invest in our commercialization capabilities, while
returning significant cash to our
shareholders — including a 16 percent dividend
increase.
EQT's compensation structure encourages managers to make decisions that will
increase total
shareholder return, EQT spokesperson Natalie Cox said in a 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.
Businesses are under
increasing pressure from
shareholders and owners to continually optimise the deployment of capital and maximise
returns.
«Is it our goal to
increase return to our
shareholders and do we have an excess amount of capital?
This firm aligns executives» and
shareholders» interests by tying compensation to economic earnings and has
increased its
return on invested capital (ROIC) for five straight years.
Bellwether's investment philosophy is simple; companies with growing profitability and a history of
increasing the dividend paid to
shareholders inevitably produce above average
returns with lower volatility.
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.
At the core of his three - year plan for
increasing returns to
shareholders was splitting the company into three autonomous businesses and eliminating its central research function.
More allocations to real assets will
increase Brookfield's aggregate AUM, which will trickle down into other investment metrics — revenues, funds from operations, and earnings will all
increase as a result, leading to superior investment
returns for their
shareholders.
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.
A
shareholder proposal by Carl Icahn of a non-binding advisory resolution that the Company commit to completing not less than $ 50 billion of share repurchases during its 2014 fiscal year (and
increase the authorization under its capital
return program accordingly)(Proposal No. 10); and
«RESOLVED, that the
shareholders hereby approve, on an advisory basis, High River's proposal that Apple commit to completing not less than $ 50 billion of share repurchases during Apple's fiscal year ending September 27, 2014 (and
increase the amount authorized for share repurchases under its Capital
Return Program accordingly).»
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.
Utilizing the payout ratio, or the percentage of profits a company
returns in the form of a dividend to its
shareholders, we can get a good bead on whether a company has room to
increase its dividend.
Some investors argue that massive share - price
increases in 2014 mean that even future successes won't produce strong
returns for
shareholders buying in at today's prices, but the demand among top pharmaceutical companies for promising drug candidates to add to their pipelines shows few signs of slowing anytime soon, and that could bode well for the sector in the coming year.
You can't argue against an 86-fold
increase in
shareholder returns over 20 years!
At 44.4 %, however, less than half of the company's earnings are being
returned to
shareholders via a dividend, providing plenty of room for more
increases going forward.
Goldman Sachs in February estimated S&P 500 firms will
return $ 1.2 trillion to
shareholders via buybacks and dividends in 2018,
increasing share buybacks by 23 percent to $ 650 billion this year.
Dividend Payout Ratios provide us valuable information on how much money a company is
returning to
shareholders and their ability to pay and
increase the dividend.
«The over 15 percent
increase in our dividend reflects our continued commitment to
return capital to
shareholders through a balanced approach of quarterly dividends and opportunistically buying back shares,» said Stephen P. Weisz, president and chief executive officer.
However, this
shareholder yield backtest did not exhibit a smooth
increase in average excess
returns from the 1st quintile to the 5th quintile.
«This quarter, we
increased tangible book value per share by 11 percent while
returning nearly $ 2.2 billion in capital to common
shareholders.»
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.
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.
«We believe
increasing the underlying farmgate
returns by $ 1 per kilogram of milk solids by financial year 2017 will deliver the level of
return Murray Goulburn supplier /
shareholders require to have confidence to invest in their farm businesses and grow milk production,» he said.
For example, how can companies manage the challenges and opportunities posed by the new genome technologies and
increase productivity to sustain the historic levels of
return to
shareholders?
Between a regularly
increasing dividend coupled with hefty special dividends,
shareholders of RAVN have been the beneficiary of excellent
returns back to
shareholders.
It has excess capital in reserve and we expect the company to
return this excess capital to
shareholders through
increased dividends and share buybacks.
Their excess capital will eventually be
returned to
shareholders through buybacks and dividend
increases as they continue to pass the Federal Reserve's Comprehensive Capital and Analysis and Review (CCAR).
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.
Our
shareholder in Phil's Nails seems to believe that if his dividend grows every year, then his
returns must also be
increasing.
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.
In contrast, banks are for - profit organizations whose earnings may be
returned to
shareholders in terms or dividends or an
increase in share value.
While being paid for holding a stock is attractive to many, and for good reason,
shareholders can earn high
returns if the value of their stock
increases while they hold it.
Through a combination of
increasing dividends and aggressive share repurchases, Chubb's high
shareholder yield allows it to give investors good
returns even without core growth, and in this case, the company would have roughly doubled your money if you had invested seven years ago and reinvested all dividends.
Since FY 2003 Qualcomm has
returned over $ 26 billion to its
shareholders in the form of
increased dividends and share buybacks.
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.
Additionally, with at least 25 consecutive years of dividend
increases, you know you are in good hands from a
return of
shareholder capital standpoint.
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.