Background: The Buyback Program
American Capital Ltd. (ACAS) evokes strong emotions in those who experienced its collapse as investors in the meltdown that began in 2008. This article doesn't look at pre-2008 metrics to assess whether some past Golden Age has returned to American Capital Ltd., but assesses at metrics from the period of its current dividend-and-share-buyback policy to determine whether management's strategy involving capital returns are working for shareholders or against them.
Prior to the collapse of 2008, ACAS touted its dividend as a major reason to invest. The company's web page continues to laud the $30.32 paid to shareholders as evidence of management's success. A frequent criticism in comments to articles about ACAS is that...
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