Seeking Alpha

Baskin Financial Blog

 
View as an RSS Feed
Latest  |  Highest rated
  • Stop Paying Me A Dividend And Start Buying Back Shares [View article]
    Thanks again for all your comments. No question here. Companies that raise dividends year in and year out outperform all others. Interestingly enough, many of the consistent dividend raisers, KO, WMT, MCD are also serial buyback specialists. I'll stick with Charlie Munger on this debate though. A company that consistently lowers its share count when its stock is trading at a discount to its intrinsic value is doing you an enormous favour.
    Jan 16 09:23 PM | Likes Like |Link to Comment
  • Stop Paying Me A Dividend And Start Buying Back Shares [View article]
    Thanks for all the comments. Some really great points raised by all. There is no question that investors are more cognizant of the tangible benefits of a dividend, especially in this zilch yield environment. My point is that there are times when capital allocators running publicly traded companies should recognize that their stock is undervalued and the P/E to ROE is one measuring stick. If buying back stock at discount levels leads to a higher share price then an investor can always create his own dividend by selling a portion of the capital appreciation.
    Jan 11 12:35 PM | Likes Like |Link to Comment
COMMENTS STATS
2 Comments
0 Likes