Kofi Bofah

Price Dividend Ratio: Lessons From History

Also, companies have taken to share buybacks, rather than allocating the capital towards increasing dividends. Share buybacks came into vogue as a gimmick to prop up earnings per share. In depth research often reveals the fallacy of the buyback.

1: The corporation is buying back stock at inflated prices.
2: Share buybacks often are a means to erase newly issued shares that have arrived courtesy of executive compensation.

I do think that investors should begin to execute investment decisions based upon income, rather than fairy tale capital gains.