Sentences with phrase «spends shareholder capital»

We are impressed with management's track record as excellent operators and we like the way the company spends shareholder capital.

Not exact matches

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.

Their idea was that shareholders can not be sure that a company will spend its capital wisely, so a dollar paid in dividends is preferable to one kept as retained earnings.

On the other hand, once companies have matured to the point where they don't need to spend all of the money they generate on growing the business, there are two main ways to return capital to shareholders — dividends or share buybacks.

A lot of the smaller companies are undercapitalized and they have to spend lots of money (or dilute shareholders... same idea) to raise capital.

Spends by far the most amount of his time meeting with management trying to determine if they are good stewards of shareholder capital

This is where the theory and reality diverge: The majority of companies that don't pay out a significant portion of cash flows in dividends (or stock buybacks, though I place more value on dividends, as stock buybacks could be postponed) more often than not end up destroying shareholder wealth in empire - building acquisitions or marginal capital investments (if they had better investments to begin with they would spend cash right away).

«Given the amount of money you're spending on high - cost, high carbon projects... given your demand restraints due to carbon asset risks, we think a more prudent use of capital is to return more money to shareholders through dividends and share buybacks.»

Instead of spending capital on growth, cash flow from existing operations can be returned to shareholders in the form of share buybacks and increased dividends.