Some Perspective on Buybacks Given Recent Criticism

Buybacks have been put back into the spotlight as boogeymen. Earlier this week, Senators Chuck Schumer and Bernie Sanders wrote an op-ed in The New York Times attacking share repurchases. Among their accusations were that stock buybacks mostly benefit the wealthy and divert money from being spent on capital expenditures, salary increases and other worker benefits. It’s…

 

Stock Buybacks Are Being Maligned

Stock buybacks have been the topic of discussion lately. Not from an investment strategy perspective, but more so from the perspective of what corporations should be doing with their cash. This is not surprising given the tax cuts, strong corporate earnings and the ongoing conversations surrounding worker pay. While some of the arguments may seem…

 

Dividends and Buybacks Drive Stock Returns

The return of capital by companies to shareholders is a key contributor to long-term returns. A forthcoming study by Morningstar’s Philip Straehl and Yale’s Roger Ibbotson attributes more than two-thirds of the real (inflation-adjusted) return in stock prices for the period of 1871 through 2014 to total yield. Return of capital includes both dividends and…

 

AAII Weekly Features: Stock Buybacks: Misunderstood, Misanalyzed and Misdiagnosed

This week’s AAII Weekly Features highlight these valuable AAII articles: Stock Buybacks: Misunderstood, Misanalyzed and Misdiagnosed Nine Rules for Smarter Investing How to Measure the Skills of Your Fund Manager The Individual Investor’s Guide to Personal Tax Planning 2015 The featured AAII stock screen this week is the Richard Driehaus earnings growth and surprises approach. Our Member…