Interesting discussion @Michael Blair I want to like buybacks, I really do and then grinches like you come along and burst the bubble the of sweet blather that managment puts out. 🤣The logic is fairly simple, smaller float equals more rewards-dividends for those who stick around to the end. I've never seen a cause and effect on that theory though. U.S. shale cos have been buying back their stock like mad under that premise, and I imagine every share reduction made in the last couple of years is underwater. Devon Energy has spent billions buying back stock, yet I know it's barely kept pace with all the acquisitions that have been paid for in stock, and my dividend for Q-4 will be smaller than Q-3 due to shrinking cash flow. It makes the head hurt. I think going forward, I am a simple man. Give me my damn dividend and let that be the end of it. Cheers and thanks as always for interesting content.
That's no joke. I am long BIREF, and CPG, SU, BTE, and a couple of others. I am a recovering Eric Nuttall o phile. The whole sector is in the tank and, of course, has been buying back their stock the entire way down. 🤣
Buybacks are a much preferred way to return capital soley from a tax perspective. Rather than pay the government a 15-25% tax on dividends, the company can allocate the entire proceeds towards a stock buyback. $100 will buy $100 of stock instead of $80 in aftertax dividends to me, which I will likely use to buy more stock anyways
I was in error and corrected it.
Interesting discussion @Michael Blair I want to like buybacks, I really do and then grinches like you come along and burst the bubble the of sweet blather that managment puts out. 🤣The logic is fairly simple, smaller float equals more rewards-dividends for those who stick around to the end. I've never seen a cause and effect on that theory though. U.S. shale cos have been buying back their stock like mad under that premise, and I imagine every share reduction made in the last couple of years is underwater. Devon Energy has spent billions buying back stock, yet I know it's barely kept pace with all the acquisitions that have been paid for in stock, and my dividend for Q-4 will be smaller than Q-3 due to shrinking cash flow. It makes the head hurt. I think going forward, I am a simple man. Give me my damn dividend and let that be the end of it. Cheers and thanks as always for interesting content.
That's no joke. I am long BIREF, and CPG, SU, BTE, and a couple of others. I am a recovering Eric Nuttall o phile. The whole sector is in the tank and, of course, has been buying back their stock the entire way down. 🤣
Buybacks are a much preferred way to return capital soley from a tax perspective. Rather than pay the government a 15-25% tax on dividends, the company can allocate the entire proceeds towards a stock buyback. $100 will buy $100 of stock instead of $80 in aftertax dividends to me, which I will likely use to buy more stock anyways