Comments on: Share Buybacks – Do they really help? http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/ Dividend Investing & Value Investing For A Superior Portfolio Sat, 20 Mar 2010 12:01:24 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Dividends4Life http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/comment-page-1/#comment-2206 Dividends4Life Sun, 06 Apr 2008 02:01:00 +0000 http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/#comment-2206 LOD&PI: I agree that dividend and share repurchases should go hand in hand. From my perspective, share repurchases should be the residual after executing a defined growth dividend policy.<br/><br/>Best Wishes,<br/>D4L LOD&PI: I agree that dividend and share repurchases should go hand in hand. From my perspective, share repurchases should be the residual after executing a defined growth dividend policy.

Best Wishes,
D4L

]]> By: living off dividends &amp; passive income http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/comment-page-1/#comment-2203 living off dividends &amp; passive income Sat, 05 Apr 2008 19:27:00 +0000 http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/#comment-2203 I think raising the dividends should go hand in hand with share repurchases.<br/><br/>I think recently TCK announced this. Share repurchases by themselves seem very suspicious. (kind of how an investment bank firm will pay the top 6 execs $150 million in bonuses plus stock options and only $20 million in dividends to the shareholders). I think raising the dividends should go hand in hand with share repurchases.

I think recently TCK announced this. Share repurchases by themselves seem very suspicious. (kind of how an investment bank firm will pay the top 6 execs $150 million in bonuses plus stock options and only $20 million in dividends to the shareholders).

]]> By: Dividends4Life http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/comment-page-1/#comment-2160 Dividends4Life Wed, 19 Mar 2008 16:56:00 +0000 http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/#comment-2160 Tyler: Thanks for the comment. Your link cut off, so I reposted it here:<br/><br/><a HREF="http://dividendmoney.com/stock-buybacks-who-benefits-the-most" REL="nofollow">Stock Buybacks: Who Benefits The Most?<br/></a><br/><br/>Good read, BTW.<br/><br/>Best Wishes,<br/>D4L Tyler: Thanks for the comment. Your link cut off, so I reposted it here:

Stock Buybacks: Who Benefits The Most?

Good read, BTW.

Best Wishes,
D4L

]]> By: Tyler http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/comment-page-1/#comment-2159 Tyler Wed, 19 Mar 2008 13:54:00 +0000 http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/#comment-2159 I have posted on this topic over at Dividend Money and have a different view from that posted here. <br/>Who actually benefits the most from share repurchases?<br/>http://dividendmoney.com/stock-buybacks-who-benefits-the-most/ I have posted on this topic over at Dividend Money and have a different view from that posted here.
Who actually benefits the most from share repurchases?
http://dividendmoney.com/stock-buybacks-who-benefits-the-most/

]]> By: Dividends4Life http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/comment-page-1/#comment-2148 Dividends4Life Mon, 10 Mar 2008 12:10:00 +0000 http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/#comment-2148 AI: Dividend investing in the U.S. did not catch on until the tax rate was lowered on "qualified" dividends.<br/><br/>Capital gains are still more tax efficient, but not by as much as in th past.<br/><br/>Thanks for visiting and commenting.<br/><br/>Best Wishes,<br/>D4L AI: Dividend investing in the U.S. did not catch on until the tax rate was lowered on “qualified” dividends.

Capital gains are still more tax efficient, but not by as much as in th past.

Thanks for visiting and commenting.

Best Wishes,
D4L

]]> By: aussieinvestor http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/comment-page-1/#comment-2147 aussieinvestor Mon, 10 Mar 2008 09:26:00 +0000 http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/#comment-2147 Hi Dividends4Life. I've really enjoyed browsing through your blog. Thanks for stopping by and commenting on mine (<a HREF="http://beginnersstockinvesting.blogspot.com/" REL="nofollow">Stock Market Investing For Beginners</a>).<br/><br/>On the topic of share buybacks, tax implications can have a big impact. Here in Australia, capital gains are taxed at a lower rate provided you hold a stock for more than one year. So provided the buyback doesn't pay too much for the shares, it can work out in favor of long term holders of the stock.<br/><br/>It doesn't help investors looking for income though... Hi Dividends4Life. I’ve really enjoyed browsing through your blog. Thanks for stopping by and commenting on mine (Stock Market Investing For Beginners).

On the topic of share buybacks, tax implications can have a big impact. Here in Australia, capital gains are taxed at a lower rate provided you hold a stock for more than one year. So provided the buyback doesn’t pay too much for the shares, it can work out in favor of long term holders of the stock.

It doesn’t help investors looking for income though…

]]> By: Dividends4Life http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/comment-page-1/#comment-2145 Dividends4Life Sun, 09 Mar 2008 20:24:00 +0000 http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/#comment-2145 PI: You are correct. I too work for an S&P 500 Co. We use an IRR model to evaluate projects to determine if they are over the cost of capital. Generally, the highest IRRs come on internal projects, then acquisitions. Once these are exhausted we use excess cash to pay down debt, then to purchase shares. With annual dividend growth as a function of projected excess cash (within a reasonable range).<br/><br/>Best Wishes,<br/>D4L PI: You are correct. I too work for an S&P 500 Co. We use an IRR model to evaluate projects to determine if they are over the cost of capital. Generally, the highest IRRs come on internal projects, then acquisitions. Once these are exhausted we use excess cash to pay down debt, then to purchase shares. With annual dividend growth as a function of projected excess cash (within a reasonable range).

Best Wishes,
D4L

]]> By: Passive Income http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/comment-page-1/#comment-2143 Passive Income Sun, 09 Mar 2008 18:14:00 +0000 http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/#comment-2143 FJ and D4L, <br/>I am not a fan of stock repurchases. I am a believer that, in general, continued stock repurchases without any real growth in company is an indication that management is not able to inject cash back in business. I work of S&P500 company. In the market domain, the growth has become standstill (but still very healthy cash flow) for last 5 years. All companies have resorted to buy backs instead of investing in core strengths or divident growth. There needs to be balance between all. FJ and D4L,
I am not a fan of stock repurchases. I am a believer that, in general, continued stock repurchases without any real growth in company is an indication that management is not able to inject cash back in business. I work of S&P500 company. In the market domain, the growth has become standstill (but still very healthy cash flow) for last 5 years. All companies have resorted to buy backs instead of investing in core strengths or divident growth. There needs to be balance between all.

]]> By: Dividends4Life http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/comment-page-1/#comment-1943 Dividends4Life Sat, 10 Nov 2007 03:59:00 +0000 http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/#comment-1943 FJ: I am not against share repurchase – there is a delicate mix between it and dividend increases. Either taken to the extreme can be detrimental to a company. I work for a S&P 500 company. The decision tree we follow is: internal growth, acquisitions, pay down debt, share repurchases, let the cash sit on the balance sheet, moderate dividend increases.<br/><br/>I am a big fan of your site. Thanks for stopping by!<br/><br/>D4L FJ: I am not against share repurchase – there is a delicate mix between it and dividend increases. Either taken to the extreme can be detrimental to a company. I work for a S&P 500 company. The decision tree we follow is: internal growth, acquisitions, pay down debt, share repurchases, let the cash sit on the balance sheet, moderate dividend increases.

I am a big fan of your site. Thanks for stopping by!

D4L

]]> By: FinancialJungle http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/comment-page-1/#comment-1942 FinancialJungle Sat, 10 Nov 2007 02:42:00 +0000 http://dividendsvalue.com/1115/share-buybacks-do-they-really-help/#comment-1942 Hi Dividends4Life, great blog you have, and I love your mules introduction. Looks like you're quite a prolific blogger with almost a post per day. BTW, I'll add you to my blogroll after this. We don't have enough dividend investing blogs in Canada.<br/><br/>With respect to share repurchases, I'm a big fan. I'm not familiar with the specious study conducted by S&P, but any study done within an 18-month period is just deceptive, in my opinion. <br/><br/>All businesses are cyclical to a degree, and often the best action is to buy back shares instead of reinvesting into the core businesses, or at least temporary until businesses start to pick up again. Hi Dividends4Life, great blog you have, and I love your mules introduction. Looks like you’re quite a prolific blogger with almost a post per day. BTW, I’ll add you to my blogroll after this. We don’t have enough dividend investing blogs in Canada.

With respect to share repurchases, I’m a big fan. I’m not familiar with the specious study conducted by S&P, but any study done within an 18-month period is just deceptive, in my opinion.

All businesses are cyclical to a degree, and often the best action is to buy back shares instead of reinvesting into the core businesses, or at least temporary until businesses start to pick up again.

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