Investors can profit from companies that aim to increase shareholder value
through stock buybacks — as well as with dividends.
Despite the strong start, concern remains among retail investors and portfolio managers that chief financial officers remain too fixated on returning cash to shareholders
through stock buybacks and dividends.
Management has historically returned capital to shareholders
through stock buybacks and dividends, and with insiders owning 35 % of outstanding shares, we expect Franklin to continue to be good stewards of shareholders» capital.
Some analysts predict the company could send as much as $ 180 billion to investors
through stock buybacks and dividend increases over the next two and a half years, on top of the $ 300 billion it has already authorized.
Not exact matches
Buybacks have been a safety net of sorts for the
stock market
through the almost nine - year bull market.
The last time multinational companies repatriated cash — also during the last Bush presidency — a bipartisan Senate investigation later found that those same companies actually shipped even more jobs overseas, while paying their shareholders billions
through buybacks of their own
stock.
Examples of such projects providing marginal benefits are: improving financial reporting systems
through better information technology, minor tweaks to supply chain logistics, cutting back on marketing or increasing low - cost advertising (like social media), «rationalization» of head count, holding average wages as low as possible, squeezing suppliers a little bit, not repatriating earnings to stave off taxation, refinancing rather than retiring debts, and the share
buyback that is insensitive to a company's current
stock price.
Earlier this year, under investor pressure, Apple decided to increase the size of a dividend - and -
buyback program to $ 100 billion, including $ 60 billion to repurchase
stock through 2015.
At current prices, the 250 million share
buyback authorization would represent $ 13.2 billion and
through 3Q15, Wells Fargo has repurchased $ 6.7 billion of common
stock, which represents 2.5 % of WFC's market cap.
Then they distribute the profits to their shareholders, either
through dividends or
stock buybacks.
TrimTabs Investment Research reported today that announced
stock buybacks in earnings season
through Monday, August 15 have fallen to the lowest level since the summer of 2012, averaging just 3.3 for $ 1.8 billion daily.
Only
through cheap debt accumulation have laggards been able to afford the
buybacks necessary to keep
stock appreciation stable.
But the interesting thing is that in the eyes of many investors, Apple's quarterly iPhone sales numbers seem to matter less now than they have for years — at least relative to how much cash Apple is generating and returning to shareholders
through dividends and
stock buybacks.
I look for intelligence in the management teams in
stocks that I own, and am quick to sell those that destroy value
through bad investments, or bad
buybacks.
Analyze the use of cash flow by management, to avoid companies that invest or buy back their
stock when it dilutes value, and purchase those that enhance value
through intelligent
buybacks and investment.
The second way to make money in the
stock market is
through dividends and share
buybacks.
Obviously with tech companies and their cash holdings, their approaches to
stock comp /
buybacks / repatriation / capex
through acquisition etc have to be borne in mind, and how much of it is effectively working capital in one form or another — but it occurred to me that there are a few companies out there where cash balances could make a material difference to valuation (even more so than picking the right multiples with some!)
The logical thing is a reduction in Equity
through a negative Treasury
Stock entry — makes sense, an Asset (Cash) is decreased / eliminated because of the
buyback, so we need a corresponding reduction in the Liability side of the B / S, in Equity — but on occasion I've seen shares rather bizarrely carried on the B / S as an Asset!
Outerwall hasn't been liquidating itself
through buybacks — instead it has leveraged the balance sheet by issuing large amounts of debt, using the proceeds to buy back
stock, which has reduced the share count, but not the size of the balance sheet or the amount of capital employed.
CEOs who are paid in
stock have an incentive to boost their short - term share price
through buybacks, whether or not activists are in charge.