Comments on: What’s Better: A Share Buyback or a Dividend? http://allfinancialmatters.com/2007/06/27/whats-better-a-share-buyback-or-a-dividend/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 25 May 2012 01:47:17 +0000 hourly 1 http://wordpress.org/?v= By: Payday Loan http://allfinancialmatters.com/2007/06/27/whats-better-a-share-buyback-or-a-dividend/comment-page-1/#comment-434506 Payday Loan Thu, 13 Aug 2009 22:03:00 +0000 http://allfinancialmatters.com/?p=1859#comment-434506 £5.4 billion worth of their own shares is a big number, it sounds strange but its the truth. Debbie <a href="http://www.paydayagency.co.uk" rel="nofollow">Payday Loans No Faxing</a> £5.4 billion worth of their own shares is a big number, it sounds strange but its the truth.

Debbie

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]]> By: Payday loan http://allfinancialmatters.com/2007/06/27/whats-better-a-share-buyback-or-a-dividend/comment-page-1/#comment-155097 Payday loan Fri, 19 Oct 2007 19:44:51 +0000 http://allfinancialmatters.com/?p=1859#comment-155097 Last year may have set a record for share buybacks, but on the evidence of the past week British companies have lost none of their appetite for repurchasing their own stock. Over the past five days alone, four FTSE 100 stalwarts, BT Group, Compass Group, Enterprise Inns and National Grid, have announced plans to mop up an additional £5.4 billion worth of their own shares. Given that corporate Britain is estimated to have spent £46 billion on buybacks in 2006, a heady 64 per cent increase on the previous year, declarations of intent to acquire a sum of more than one tenth that tally in a single week indicates that 2007 should be another banner year. Nor is this purely a domestic phenomenon. On Wall Street, the likes of ExxonMobil, GE, Goldman Sachs and Microsoft are mopping up their own shares with brio. S&P 500 companies are estimated to have bought back $110 billion (£55.6 billion) of stock in the first quarter of this year, on top of the $800 billion they have spent in the previous two years. <a href="http://www.paydayland.com" rel="nofollow">Payday Loan Cash Advance </a> Last year may have set a record for share buybacks, but on the evidence of the past week British companies have lost none of their appetite for repurchasing their own stock.

Over the past five days alone, four FTSE 100 stalwarts, BT Group, Compass Group, Enterprise Inns and National Grid, have announced plans to mop up an additional £5.4 billion worth of their own shares. Given that corporate Britain is estimated to have spent £46 billion on buybacks in 2006, a heady 64 per cent increase on the previous year, declarations of intent to acquire a sum of more than one tenth that tally in a single week indicates that 2007 should be another banner year. Nor is this purely a domestic phenomenon. On Wall Street, the likes of ExxonMobil, GE, Goldman Sachs and Microsoft are mopping up their own shares with brio. S&P 500 companies are estimated to have bought back $110 billion (£55.6 billion) of stock in the first quarter of this year, on top of the $800 billion they have spent in the previous two years. Payday Loan Cash Advance

]]> By: fivecentnickel.com http://allfinancialmatters.com/2007/06/27/whats-better-a-share-buyback-or-a-dividend/comment-page-1/#comment-117765 fivecentnickel.com Mon, 02 Jul 2007 04:03:27 +0000 http://allfinancialmatters.com/?p=1859#comment-117765 <strong>Weekly Roundup - 06/29/07</strong> Well, after two long days, we made it back into town safely. We covered 2900+ miles in 12 days, with the bulk of the driving packed into the first and last two days. We’re beat, but we had a great time and are glad to be back home. With that said... Weekly Roundup – 06/29/07

Well, after two long days, we made it back into town safely. We covered 2900+ miles in 12 days, with the bulk of the driving packed into the first and last two days. We’re beat, but we had a great time and are glad to be back home. With that said…

]]> By: William Abernathy http://allfinancialmatters.com/2007/06/27/whats-better-a-share-buyback-or-a-dividend/comment-page-1/#comment-117472 William Abernathy Sat, 30 Jun 2007 16:02:58 +0000 http://allfinancialmatters.com/?p=1859#comment-117472 I would rather have the dividend. In fact the plan that I have implemented requires a stock that pays a good dividend. I would rather have the dividend. In fact the plan that I have implemented requires a stock that pays a good dividend.

]]> By: Sam http://allfinancialmatters.com/2007/06/27/whats-better-a-share-buyback-or-a-dividend/comment-page-1/#comment-116874 Sam Thu, 28 Jun 2007 20:00:21 +0000 http://allfinancialmatters.com/?p=1859#comment-116874 ’d rather have real money in my pocket ’d rather have real money in my pocket

]]> By: FAQs on Legal Process Outsourcing. http://allfinancialmatters.com/2007/06/27/whats-better-a-share-buyback-or-a-dividend/comment-page-1/#comment-116755 FAQs on Legal Process Outsourcing. Thu, 28 Jun 2007 07:50:59 +0000 http://allfinancialmatters.com/?p=1859#comment-116755  What are key compelling reasons for outsourcing by the US firms?  What is the break-up of total spending by the top US based law firms?  Where the business of legal outsourcing emanate from?  What is the annual contribution made to the US economy due to outsourcing?  What is the business expected to come in India pertaining to legal outsourcing?  Why India is in the lead in the legal outsourcing industry?  What is the pricing trend in the LPO business industry?  What is the supply source of legal outsourcing services from India?  What about patent oriented services? To learn more about the FAQs over Legal Process Outsourcing industry in India, visit www.kpoconsultants.com  What are key compelling reasons for outsourcing by the US firms?

 What is the break-up of total spending by the top US based law
firms?

 Where the business of legal outsourcing emanate from?

 What is the annual contribution made to the US economy due to
outsourcing?

 What is the business expected to come in India pertaining to legal
outsourcing?

 Why India is in the lead in the legal outsourcing industry?

 What is the pricing trend in the LPO business industry?

 What is the supply source of legal outsourcing services from India?

 What about patent oriented services?

To learn more about the FAQs over Legal Process Outsourcing industry
in India, visit http://www.kpoconsultants.com

]]> By: Jordan http://allfinancialmatters.com/2007/06/27/whats-better-a-share-buyback-or-a-dividend/comment-page-1/#comment-116646 Jordan Wed, 27 Jun 2007 21:22:44 +0000 http://allfinancialmatters.com/?p=1859#comment-116646 It might be worth noting that there are certain transaction costs that are lost completely during a share buyback that are not present in one-time bonus dividends (you have to pay some firm to manage the buyback). These monies completely leave the company, so at times, the extra dividend may actually put more money in the hands of the stockholder. Of course, if you think your stock is undervalued... Or you want to protect your shareholders from having to realize taxes on dividends (especially if your company is heavily held by large institutions/funds not expecting the large dividend)... It might be worth noting that there are certain transaction costs that are lost completely during a share buyback that are not present in one-time bonus dividends (you have to pay some firm to manage the buyback). These monies completely leave the company, so at times, the extra dividend may actually put more money in the hands of the stockholder.

Of course, if you think your stock is undervalued…

Or you want to protect your shareholders from having to realize taxes on dividends (especially if your company is heavily held by large institutions/funds not expecting the large dividend)…

]]> By: Steve http://allfinancialmatters.com/2007/06/27/whats-better-a-share-buyback-or-a-dividend/comment-page-1/#comment-116640 Steve Wed, 27 Jun 2007 20:23:54 +0000 http://allfinancialmatters.com/?p=1859#comment-116640 I wonder if it also has to do with where they are on the growth cycle. There are only so many Future Shops/Best Buys you can pump into any given town before you aren't getting enough additional business to justify it, and considering the big box growth spree of the last decade, I wouldn't be surprised if that's the case, and they will be moving from a "growth and market share" focus to a "milk the profits from our cash cow" phase. That being the case, they probably don't need as much capital, especially as it frees up as the buildings depreciate. Sort of a "thanks for helping us grow, here's your money back with a little somethin' somethin' for your trouble". I wonder if it also has to do with where they are on the growth cycle. There are only so many Future Shops/Best Buys you can pump into any given town before you aren’t getting enough additional business to justify it, and considering the big box growth spree of the last decade, I wouldn’t be surprised if that’s the case, and they will be moving from a “growth and market share” focus to a “milk the profits from our cash cow” phase. That being the case, they probably don’t need as much capital, especially as it frees up as the buildings depreciate. Sort of a “thanks for helping us grow, here’s your money back with a little somethin’ somethin’ for your trouble”.

]]> By: broknowrchlatr http://allfinancialmatters.com/2007/06/27/whats-better-a-share-buyback-or-a-dividend/comment-page-1/#comment-116639 broknowrchlatr Wed, 27 Jun 2007 20:13:54 +0000 http://allfinancialmatters.com/?p=1859#comment-116639 Doesn't this have to do with the source of the money. If it is from any one time event, buyback is the way to go. If you gave a one time bonus dividend, the price would temporarily inflate, but then drop down. If it is from income, increasing the dividend is better becasue it is permanent and will also affect the stock price. Doesn’t this have to do with the source of the money. If it is from any one time event, buyback is the way to go. If you gave a one time bonus dividend, the price would temporarily inflate, but then drop down.

If it is from income, increasing the dividend is better becasue it is permanent and will also affect the stock price.

]]> By: LegalTherapy http://allfinancialmatters.com/2007/06/27/whats-better-a-share-buyback-or-a-dividend/comment-page-1/#comment-116637 LegalTherapy Wed, 27 Jun 2007 20:06:39 +0000 http://allfinancialmatters.com/?p=1859#comment-116637 A share buyback (unlike a dividend) is also a strong signal that the company thinks its shares are undervalued. That's typically why share buyback announcements cause a bump in the share price. Conversely, that's also why an announcement of a share issuance causes a drop in price (i.e., the company's willing to issue more shares at current market prices because they think the shares are overvalued (or at least, NOT undervalued)). A share buyback (unlike a dividend) is also a strong signal that the company thinks its shares are undervalued.

That’s typically why share buyback announcements cause a bump in the share price. Conversely, that’s also why an announcement of a share issuance causes a drop in price (i.e., the company’s willing to issue more shares at current market prices because they think the shares are overvalued (or at least, NOT undervalued)).

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