If instead we use total expenditures on dividends plus
net stock buyback cash plus change in total debt divided by market capitalization, we don't need to worry about changes in share count due to stock splits.
You have to adjust buybacks for net stock issuance as well to get to
the net stock buybacks.
The Index is comprised of the 100 companies with the best combined rank of dividend payments and
net stock buybacks, which are the key components of shareholder yield.
Not exact matches
Buybacks have been a safety
net of sorts for the
stock market through the almost nine - year bull market.
According to research by HSBC,
buybacks have been the largest source of
net demand for the
stock market since 2009.
The bank's profits dropped 3.1 %, to $ 5.4 billion from $ 5.6 billion, with that difference in
net income due to legal expenses, debt charges and $ 15 billion in
stock buybacks that reduced the bank's outstanding shares by 4 %.
The telecom company continued to show solid share -
net growth in the December quarter, supported by
stock buybacks, good cost management, wireless margin improvement, and increased penetration of U-verse, its broadband, video, and IP telephone service.
He says this can be OK, provided the company has (1) modest or no
net debt, (2) persistent and rising levels of free cash flow, and (3)
stock buybacks at a discount to intrinsic value.
The
net payout yield goal for the strategy is 8 %, defined by the amount a company spends on
stock buybacks and dividends as a percentage of its
stock price (adjusted for the amount a company receives for issuing new
stock).
There's a lot of crap out there in
net net stocks, though, which is why I like to invest in only high quality NCAV
stocks —
stocks that show a solid balance sheet and have other great qualitative aspects to them such as
buybacks or insider buys.
This year alone
buybacks accounted for a whopping 93 per cent of total
net purchases of U.S.
stocks according to Bank of America.
Nearly $ 200MM was spent to repurchase far more expensive IMN shares prior to 2008 while a pittance of IMN capital has been deployed to
buyback shares when the
stock is trading for less than its
net cash value.