In recent decades, share buybacks have overtaken dividends as a preferred way to
return cash to shareholders as there is more preferential tax treatment.
... to exercise its fiduciary duty to shareholders by winding up NTII in order to
return cash to shareholders as quickly and efficiently as possible.
Not exact matches
Now share buybacks aren't necessarily a bad thing, and in fact are Warren Buffett's preferred method for
returning cash to shareholders —
as opposed
to dividends — because they give management more flexibility.
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.»
The performance goals upon which the payment or vesting of any Incentive Award (other than Options and stock appreciation rights) that is intended
to qualify
as Performance - Based Compensation depends shall relate
to one or more of the following Performance Measures: market price of Capital Stock, earnings per share of Capital Stock, income, net income or profit (before or after taxes), economic profit, operating income, operating margin, profit margin, gross margins,
return on equity or stockholder equity, total
shareholder return, market capitalization, enterprise value,
cash flow (including but not limited
to operating
cash flow and free
cash flow),
cash position,
return on assets or net assets,
return on capital,
return on invested
(Reuters)- Murphy Oil Corp (MUR.N) said it will spin off its smaller retail gasoline business in the United States, review options for other assets, pay a special dividend and buy back shares
as it seeks
to return more
cash to shareholders.
Assets such
as excess
cash, discontinued operations, and unconsolidated subsidiaries are added
to our DCF value
as they represent
cash that can be
returned to shareholders in the future.
The company, which has a longstanding policy of paying out 70 - 80 % of its
cash flow per share
as dividends,
returns over $ 5 billion
to shareholders each year in the form of dividends.
We generate
cash flow that we deploy
to returning to shareholders as well
as investing in businesses, doing strategic acquisitions.
Let's further assume that the Nikkei companies in the aggregate have a net
cash balance equal
to 30 % of market capitalization and decide
to return all the net
cash to shareholders as a special dividend, the implied P / E multiple for the Nikkei would drop from 8x
to 5x.
The company maintains a fairly high payout ratio
as it
returns much of its
cash flows
to shareholders in the form of dividends.
As one of the most diversified healthcare companies with 12 megabrands, including Johnson's, Band - Aid, and Neutrogena, that are sold across 60 countries, J&J looks well poised
to grow earnings,
cash flows, and
shareholder returns for years
to come.
The book is a series of case studies that describes how a small number of CEOs have used
cash generative businesses
as platforms
to drive massive
returns for
shareholders by directing excess
cash opportunistically between large stock buybacks, special dividends and acquisitions of other businesses.
Rio, which delivered almost $ 10 - billion of
cash returns to shareholders in 2017, could improve on that
as cash builds.
That's business
as usual for Texas Instruments, which aims
to return essentially 100 % of its free
cash flows directly
to shareholders.
Stronger iPhone prices and hints by Apple Inc on Thursday that it could
return more than half of its $ 285 billion in
cash to shareholders eased concerns among investors, even
as the world's biggest technology company gave a disappointing revenue outlook for the current quarter.
Return of Capital On October 14, 2014, the company's Board of Directors authorized a
cash dividend program under which it intends
to pay a regular quarterly dividend, and declared a quarterly dividend of $ 0.25 per share payable on November 12, 2014
to shareholders of record
as of October 28, 2014.
While some defend the buyback practice
as a method of
returning cash to shareholders, others, including my colleague Larry Fink, have argued that some companies today are focusing on maximizing short - term
shareholder value at the expense of investing in the future.
If these companies have capital
to allocate, and can't reinvest it attractively in the business, make sensible acquisitions with it or pay down debt, they have
to either keep it around
as cash equivalents or
return it
to shareholders.
Back in the mid-90's, ROIC - based models such
as Economic Value Added (EVA) and
Cash Flow
Return On Investment (CFROI) were all the rage, with corporate giants such
as Coca - Cola (KO), AT&T (T), and Procter & Gamble (PG) linking them
to executive compensation and highlighting them in communications with
shareholders.
The finding appears
to extend
to the macroeconomic level
as well —
shareholders in the larger economy got a much bigger bang for their buck when
cash was
returned to them
as dividends than when it was deployed into capital expenditure.
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.
As cash returned to shareholders can be reinvested in the common stock of a particular company, investors benefit from high - yield companies as a grou
As cash returned to shareholders can be reinvested in the common stock of a particular company, investors benefit from high - yield companies
as a grou
as a group.
Only a few days after Apple announced that it is planning
to return as much
as $ 100 billion of its
cash mountain
to shareholders via buybacks, throughout the Q&A session with Berkshire Hathaway
shareholders, Buffett and Charlie Munger answered several questions on the topic of why attracted them
to Apple in the first place.
As these assets are digested, Apache will be in position
to return more
cash flow
to shareholders.
Sure, there are other ways
to generate
cash flow
to shareholders (such
as return of capital) but dividend stocks provide predictable, consistent
cash flows
to patient investors.
Like Allstate, they are oozing free
cash flow in this environment, and don't have
as many reinvestment opportunities; they ought
to be
returning cash to shareholders, but cautiously, buying only on dips.
I'm not counting share repurchases
as cash returned to shareholders as, you will note, the share count, despite the substantial repurchases, is up slightly.
In fact I think I was lucky that the shares «only» declined 48 % and that's due the fact that the two large investors have taken an activist role
to make sure that most of the remaining
cash is
returned to shareholder; without them the
cash would have probably been «re-invested» by management
to keep the company alive (and thus feeding management their salaries)
as long
as possible.
In other words don't count on that
cash being
returned to shareholders or even invested in passive investments (private or public equity) for the benefit of
shareholders; A liquidation valuation really isn't of interest here
as Glassbridge is set
to be an ongoing business and I can see an operating
cash bleed for 3 - 5 years depending on how long it takes the company
to attract enough AUM
to cover operating (read staffing) costs.
As a practical matter,
cash - on - hand was
returned to shareholders and the remainder of the fund's assets were placed in a trust.
If these companies have capital
to allocate, and can't reinvest it attractively in the business, make sensible acquisitions with it or pay down debt, they have
to either keep it around
as cash equivalents or
return it
to shareholders.
As it stands, KGP /
shareholders effectively earn nothing from this
cash — but if this
cash, for example, were
returned tomorrow morning
to shareholders, there's no reason
to believe that would negatively affect Kingspan's P / S multiple (or its financial strength), and
shareholders would have an additional 212 M
cash to re-invest (or invest elsewhere).
When
shareholders invest in a listed asset manager, they simply want: a) exposure
to the asset management business, and b) surplus
cash to be distributed, thereby enhancing
returns & granting each
shareholder the freedom
to manage this
cash directly,
as they see fit.
Finally you should discount all Zamano's intangibles
to 0 and give up any hope of extracting any
cash from them before they
return capital
to shareholders — goodwill makes up the majority of their intangibles which can not be sold on and internally generated development costs, which arguably have no place on the balance sheet, will also find no willing buyer
as they are specific
to Zamano and can not be easily transferred.
The most frequently used measure — dividend payout ratio, which is calculated
as dividend per share divided by earnings per share — shows what percentage of its profit a company is
returning to its
shareholders in the form of
cash dividends.
«
As you can see, my holdings are dominated by foreign stocks, portfolios that can and do have the ability
to tactically move
to cash (and have a high exposure
to real assets), and stocks that are
shareholder - friendly and
returning lots of
cash to investors.
«With the help of our outside advisors, we will carefully consider this expressed interest in a
cash return, within the process of evaluating a range of alternatives, understanding that our goal is,
as always,
to provide enhanced value
to all of our
shareholders.»
Management decided
to return cash to shareholders,
as many other tech companies did, through both dividends and share repurchases.
February marked a great start of the year for dividend growth investors
as companies lay out the financial plans for the year and start
returning more
cash to shareholders.
This, combined with our focus on working capital management and the
cash generative nature of our business, means we have the potential
to generate meaningful
shareholder returns as our business grows.