|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
Dividends or Share Buybacks
Posted by: Michael Hamlett Jr (IP Logged)
Date: July 15, 2014 10:04PM
Josh Peters argues that share buybacks aren't in the best interest of the shareholders. It is much better for a company to either pay out a special dividend or increase their dividend within the next year if there is extra cash. Companies should increse their dividend buy the percentage they would have bought back their shares. Investors shouldn't value share buybacks over cash dividends. The actual cash dividends paid by a company add much more value to all shareholders than a share repurchase program. This is not to say that buybacks are terrible and companies that execute share repurchase programs should be avoided. However, investors should focus more on companies that actually pay cash dividends rather than those that are fixated with share buybacks.
Stocks Discussed: USB, TROW, WFC, GIS,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.