Share repurchases are just one way that companies can use excess capital,
with paying dividends to shareholders being the other obvious choice.
Not exact matches
Shareholders in gold producer Regis Resources are set
to begin reaping rewards from the company's progress
with it announcing intentions
to pay a maiden
dividend next year.
Profits
paid out from the corporation
to shareholders as
dividends are taxed at a significantly lower rate than personal income and income can be split
with family members
to further offset taxes.
Valor reported that under the proposal Boeing would
pay Embraer in cash when the commercial assets are transferred
to the new company,
with most of the proceeds then distributed
to shareholders as
dividends.
Obviously,
shareholders in a company
with a low return on equity would be better off liquidating the company or
paying 90 % of earnings out in
dividends since investors may be able
to earn a higher return from another investment.
Bellwether's investment philosophy is simple; companies
with growing profitability and a history of increasing the
dividend paid to shareholders inevitably produce above average returns
with lower volatility.
Rich Uncles» REIT investing strategy is
to buy commercial real estate
with at least 50 % cash down, rent the spaces
to reliable companies
with long - term leases and
pay out the rental income
to their REIT
shareholders via monthly
dividends.
With companies that do not
pay a
dividend, a
shareholder has
to sever the ties by selling shares
to raise capital
to fund their lifestyle.
Instead of
paying dividends to its
shareholders, Iconomi rewards them
with an increase in value of their holdings.
Got ta love them Canadian banks,
with BMO I'm pretty sure they have had centuries worth of consecutive
dividends paid to their
shareholders so I would say that bank has some good merit in my books.
With each new NEO block generated, GAS is distributed
to all NEO holders — this process is similar
to the way a company might
pay dividends to its
shareholders.
Preferred share: a security providing the investor
with a fixed
dividend that must be
paid before
dividends to common
shareholders.
The 20 cents sweetener replaces a confusing offer of two franked special
dividends worth a combined $ 1.31 WCB proposed
to pay shareholders under the previous $ 9 a share offer agreed
with Saputo.
Money - losing companies are sometimes unable
to keep
paying a longstanding
dividend, and they sometimes spring the bad news on their
shareholders with little or no warning.
With companies that do not
pay a
dividend, a
shareholder has
to sever the ties by selling shares
to raise capital
to fund their lifestyle.
Canadian addresses -
Dividends payable
to shareholders (including individuals or intermediary accounts)
with a «registered» address in Canada shall be converted into and
paid in Canadian funds at the rate quoted for Canadian funds by the Bank of Canada at noon on the Record Date.
The company hasn't sat entirely idle
with ballooning cash balances, instead
paying a $ 0.50 quarterly
dividend while repurchasing shares
to boost
shareholder value.
Ex-
dividend date is important
to be
paid with dividend as
shareholder.
REITs
pay out a stream of income produced from the properties
with high yield
dividend payouts (minimum of 90 % by law)
to shareholders, making this type of investment incredibly attractive.
Paying a
dividend year in and year out forces management
to be conservative, efficient, and responsible
with shareholders» cash.
Preferred share: a security providing the investor
with a fixed
dividend that must be
paid before
dividends to common
shareholders.
DHT's
dividend strategy has been consistently erratic, shifting between
paying out all available cash flow
to paying a regular $ 0.25 quarterly
dividend «
to provide
shareholders with a stable and visible distribution» 1,
to the
dividend's complete elimination in September — six months after the stock market bottomed and began its historic rise.
I'm merely stating that after funding the pension (in line
with mgmt comments) and
paying the expected
dividend (while not an obligation
to shareholders, mgmt knows the company's relative valuation is at least partially based on its yield relative
to peers and will not likely cut it) there is no capital left for growth, share repurchaes or
to raise the
dividend.
Arguments can be made either for businesses returning profits or growth
to their
shareholders, but empirical research shows that
dividend yield stocks might produce a return premium starting
with Blume (1980) who found a positive relationship between the risk - adjusted returns and the expected
dividend yield of
dividend paying stocks.
Others may not
pay a
dividend if they choose
to reinvest their earningsEarnings For companies, it's the money they make and share
with their
shareholders.
But aside from GEICO, Buffett's other early 1950's investments for his personal account were things like a bus company that sold at $ 35 that
paid a $ 50
dividend to shareholder (leaving them
with more cash than they invested plus a stub worth $ 20).
I am fine
with that, the issuance of shares
to pay dividends led
to a dilution for existing
shareholders, the flipside is that there is a witholding tax on cash
dividends from Royal Dutch Shell of 15 %, so my income from that wonderful company will be lower than in the previous year (it was around USD 600 in 2017 and will be around USD 500 in 2018).
This allows a company
to pay handsome
dividends, reward
shareholders with buybacks AND / OR reinvest the money back into the business for growth.
With ETFs,
dividends are reinvested on the day of receipt and
paid to shareholders in cash every quarter.
Excluding this consideration, buying in common stock is almost always a preferable method of distributing cash
to shareholders from both a company point of view and a TAVF point of view compared
with paying cash
dividends.
Also, insiders own less than 2 % of outstanding shares, so the motivation for major
shareholders to pay a special
dividend isn't as strong as it is for a company
with very high insider ownership.
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).
Since it was the
shareholder's money
to begin
with, stocks usually drop by the amount of
dividend paid, thus no value is created.
With mutual funds, the date on which the declared income
dividend and / or capital gain distribution is
paid; checks are mailed
to shareholders (if distributions are taken in cash), or invested in additional shares (if distributions are automatically reinvested) at the option of
shareholders.
As soon as you're leaving companies
to decide whether they should offer
to pay more tax, or enable voluntary disclosures, it might go down well
with the public, but again we're back at the catch - 22: what happens when the institutional
shareholders demand a particular return or
dividend, they're not going
to be happy when the Director turns around and says «well we can't do that because we voluntarily
paid more tax this year».
With regard
to mutual funds,
dividends are income
paid by a company or mutual fund
to its
shareholders.
Whatever money is left remains
with the insurance company, which uses that money
to pay for normal operating costs,
pay dividends to owners or
shareholders or make investments.
With each new NEO block generated, GAS is distributed
to all NEO holders — this process is similar
to the way a company might
pay dividends to its
shareholders.
With no
shareholders to keep happy or
to demand
dividend pay - outs, Domb says his firm has an optimistic outlook.