one day you might realize buybacks are a better allocation of capital if you actually believed shares were undervalued. maybe after MEG and ATH and soon CVE continue to outperform the industry you might realize the error of your ways
In the meantime, keep on bagholding high dividend stocks that offer less capital appreciation and higher total returns!!
I don't make investments based on any "belief", thanks. I value the stocks formally and in the case of commodity stocks pay attention to the tails of the probability distribution. Buybacks work if and only if the purchase price of the retired shares is less than the intrinsic value of those shares, which is a rarity in an efficient market and particularly challenging for commodity based companies.
The recent changes to the Canadian budget make capital gains taxes greater than those on dividends for me (with the 66% inclusion rate over $250,000). I find it convenient to get the dividends to spend on my new Benz or a vacation or a different security rather than having some management team devoid of valuation expertise think they are doing investors a favor with buybacks.
It is hard to find any examples of "buyback" strategies that have benefited energy investors over any long term holding period. Tell me about one.
so you're saying buyback strategies dont benefit their shareholders?
You prefer dividends so you can go purchase a benz? Sounds like a GREAT allocation of capital!! Have fun with that!!!
Last I checked, when my shares of Athabasca or Meg go up 100% , I can actually sell them for a 100% gain and pocket those gains and buy a Ferrari if I wanted!!!
Hmm, if I bought Birchiff Energy over the past two years, I'd be selling for a 30-50% loss.......but it's okay, I got 10% dividends for one year and then 5% after they cut those dividends in half!!
one day you might realize buybacks are a better allocation of capital if you actually believed shares were undervalued. maybe after MEG and ATH and soon CVE continue to outperform the industry you might realize the error of your ways
In the meantime, keep on bagholding high dividend stocks that offer less capital appreciation and higher total returns!!
I don't make investments based on any "belief", thanks. I value the stocks formally and in the case of commodity stocks pay attention to the tails of the probability distribution. Buybacks work if and only if the purchase price of the retired shares is less than the intrinsic value of those shares, which is a rarity in an efficient market and particularly challenging for commodity based companies.
The recent changes to the Canadian budget make capital gains taxes greater than those on dividends for me (with the 66% inclusion rate over $250,000). I find it convenient to get the dividends to spend on my new Benz or a vacation or a different security rather than having some management team devoid of valuation expertise think they are doing investors a favor with buybacks.
It is hard to find any examples of "buyback" strategies that have benefited energy investors over any long term holding period. Tell me about one.
so you're saying buyback strategies dont benefit their shareholders?
You prefer dividends so you can go purchase a benz? Sounds like a GREAT allocation of capital!! Have fun with that!!!
Last I checked, when my shares of Athabasca or Meg go up 100% , I can actually sell them for a 100% gain and pocket those gains and buy a Ferrari if I wanted!!!
Hmm, if I bought Birchiff Energy over the past two years, I'd be selling for a 30-50% loss.......but it's okay, I got 10% dividends for one year and then 5% after they cut those dividends in half!!
What a fantastic ROI!!!