Worth noting a little different perspective on your comment of «They're buying back $ 1.5 billion worth of common stock (about 3.2 % of the market cap of the company), which is three times the amount of money the company
spent on buybacks during the first two quarters of the year.
But during this same period, a full 130 companies have spent
more on buybacks over this period than they generated in net income.
There is a lot of commentary
on buybacks from pundits who have been wrong about the stock market for a time period now measured in years.
One aspect in which TTFS and PKW are similar is that they place, in my view, undue significance
on buybacks in the immediate past rather than considering a long track record of shareholder friendliness.
Jim Cramer highlights large share repurchase programs at Apple, Boeing and others in a market that's grown
sour on buybacks.
They're buying back $ 1.5 billion worth of common stock (about 3.2 % of the market cap of the company), which is three times the amount of money the company spent
on buybacks during the first two quarters of the year.
The only year in the last 14 in which big U.S. companies spent
less on buybacks than dividends was 2009.
IBM Corp has spent $ 125 billion
on buybacks since 2005, and $ 32 billion on dividends, more than its $ 111 billion in capital spending and R&D during the same period.
Although I prefer dividends to buybacks, these companies are going to pursue both for the reasons you
indicate on the buyback side.
Although I prefer dividends to buybacks, these companies are going to pursue both for the reasons you indicate
on the buyback side.
Reinstating this
tax on buybacks would allow Governor Cuomo and the State Legislature to tax some of the windfall profits companies are making off the tax bill and protect New Yorkers from devastating federal cuts to health care and education.»
And over the five years through 2017, the 353 companies that spent
significantly on buybacks underperformed the market on average.
Some companies will choose to spend their tax
windfalls on buybacks or dividends; others will boost capital spending.
Lockheed Martin's revenue has been flat since 2010; it has spent almost $ 12
billion on buybacks in that time.
From January to June of last year, Apple lavished $ 11 billion
on buybacks at $ 127 on average, 34 % over to its current price of $ 95.
By contrast, 20 years ago, companies spent four times as much on such investments as they
did on buybacks.
«There's been an
over-focus on buybacks and raising EPS to hit share option targets, and we know that those are concentrated in the hands of the few, and that the few is in the top 1 percent,» said James Montier, a member of the asset allocation team at global investment firm GMO in London, which manages more than $ 100 billion in assets.
The company has over $ 30 billion
remaining on its buyback authorization, so there's no reason to expect a slowdown in the pace of buyback activity.
Las Palmas announced having signed Nigerian international winger Oghenekaro Etebo (22), joining from
Feirense on a buyback - including loan deal.
Toulouse announced having signed DR Congolese international striker Firmin Mubele (23),
joining on a buyback - including loan deal from Rennes.
Watford announced having signed Gabonese international midfielder Didier Ndong (23), joining in from
Sunderland on a buyback - including loan agreement, and Swedish international goalkeeper Pontus Dahlberg (19), who will leave IFK Goteborg next June, on a deal lasting until June 2023.
The money lately
lavished on buybacks appears to have come at the expense of capital spending, which presumably isn't quite so necessary in a slow - growth economy.
Buyback 10 years of service: You'll have a higher pension bump out of the gate, but it will likely be more than used up in the first 10 years paying the
tab on the buyback, which will be about $ 1,700 per month, assuming you use up the LIRA and RRSP.
[Which is obviously only meaningful if the full amount's actually spent
on buybacks].
Particularly for more lucrative pension plans, the «rate of return»
on your buyback cost, as calculated based on your future increased pension, may be a double - digit return.
If your best attempt at selling the car still proves fruitless then you can fall
back on the buyback guarantee.
Via CNET More
on Buyback Programs Turn Your Old Gadgets Into Cash NextWorth Buy Back Program Pays iPhone Owners Enough for 3G Upgrade Radio Shack Hops on Buy - Back Bandwagon
So far, the company has not officially announce any
detail on the buyback scheme for the new iPad devices.
Jim Cramer highlights share repurchase programs at Apple, Boeing and others in a market that's grown
sour on buybacks.
Those happen to be markets where I am not convinced passive index investing is the best way to go, so a strategy that
focuses on buybacks would appeal to me quite a bit.
1,900 companies have spent
money on buybacks and dividends since 2010, and the combined return of capital to shareholders for those companies equals 113 % of capital spending, according to Reuters.
Pushed by shareholders, US businesses spent $ 2.1 trillion
on buybacks in the last five years, according to research from HSBC.
In a Feburary, 2016 Fortune article, Apple Has Wasted
Billions on Buybacks, the author wrote (emphasis mine):
If after six years of what we've called a recovery, we are really having a recovery — maybe companies will rely a little
less on buybacks and financial engineering and more on capital projects.
U.S. firms have spent roughly $ 4 trillion
on buybacks since 2009, making corporations the biggest single source of demand for U.S. shares.
Her successor, Mark Hurd, spent even
more on buybacks during his five years in charge — $ 43 billion, compared to profits of $ 36 billion.
Critics point to a misallocation of capital: Money
spent on buybacks is money that isn't invested in projects that fuel longer - term success.
It could spend that money
on buybacks, dividends or acquisitions or moonshot projects.
In a market that's grown sour
on buybacks, it's important to remember how good they are for investors, Cramer says.
But annualized spending
on buybacks has dropped by at least 15 % from its high point last year, according to Silverblatt.
In fiscal 2014, spending
on buybacks and dividends surpassed the companies» combined net income for the first time outside of a recessionary period, and continued to climb for the 613 companies that have already reported for fiscal 2015.
It has been spending a lot more
on buybacks.
Pharmaceuticals maker Pfizer Inc spent $ 139 billion
on buybacks and dividends in the past decade, compared to $ 82 billion on R&D and $ 18 billion in capital spending.
3M Co, creator of the Post-it Note and Scotch Tape, spent $ 48 billion
on buybacks and dividends, compared to $ 16 billion on R&D and $ 14 billion in capital spending.