New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Guru News and Commentaries
Guru News, Stock picks and commentaries
New Topic
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicLog In
Dividends or Share Buybacks
Posted by: Michael Hamlett Jr (IP Logged)
Date: July 15, 2014 05:04PM

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,
Rate this post:

Rating: 5.0/5 (1 vote)





Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK