Legendary value investor Don Yacktman of Yacktman Funds was on CNBC to discuss the sudden increase in the number of companies offering special dividends, his thoughts on dividends, companies' dividend strategies, and what is better: dividends or share buybacks
-- Hopes companies eliminate the cash dividends all together next year as the dividend tax goes up.
-- He thinks Costco (COST, Financial) does the right thing by paying one time big dividend now and that will be a good tactic to ween off investors from their dividends in the next four to five years.
-- Thinks share buybacks are a better way of returning money to shareholders. Share buybacks and tender offers are a much more tax-efficient way of returning money to shareholders.
-- Thinks 2013 will be the year of stock buybacks.
Here is the video:
-- Hopes companies eliminate the cash dividends all together next year as the dividend tax goes up.
-- He thinks Costco (COST, Financial) does the right thing by paying one time big dividend now and that will be a good tactic to ween off investors from their dividends in the next four to five years.
-- Thinks share buybacks are a better way of returning money to shareholders. Share buybacks and tender offers are a much more tax-efficient way of returning money to shareholders.
-- Thinks 2013 will be the year of stock buybacks.
Here is the video:
