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Jim Trippon is a certified genius, a member of MENSA, and the epitome of the “Overachieving Entrepreneur.” He’s an internationally renowned and globally experienced investment expert, dedicated to finding undervalued, “under the radar” investments for his worldwide clients and subscribers. He... More
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  • Tiffany, Washington Post Raise Dividends AND Repurchase Shares 0 comments
    Jan 22, 2010 3:06 PM | about stocks: GHC, TIF, BRK.A, BRK.B

    Tiffany, Washington Post Raise Dividends AND Repurchase Shares

     Double Dipping: Tiffany, Washington Post Raise Dividends AND Repurchase Shares

    About: (Tiffany, Washington Post , Tiffany (NYSE: TIF), Washington Post Co. (NYSE: WPO), Berkshire Hathaway (NYSE: BRK-A, BRK-B), Oracle of Omaha, Kaplan education services firm, Dividend Genius, dividend stock, dividend stocks, stock dividend, stock dividends)

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    There is often a fair amount of debate surrounding what is a better method for a company to reward shareholders with: A dividend hike or a share repurchase plan. Dividend detractors say dividends cost a company cash that can be used to reinvest in its business. Supporters like the cash and view it as a sign of company's strong balance sheet. Those that favor share buybacks like the idea of a smaller number of shares outstanding, which can help boost earnings per share.
    Both strategies have merit, but what if you can find a company that is engaging in both practices? On Thursday we learned of two companies doing just that. Tiffany (NYSE: TIF), the high-end jeweler, said it will boost its quarterly dividend by 18% to 20 cents a share and reinstate a share repurchase plan with $402 million left on it.

    Washington Post Co. (NYSE: WPO) joined the party by announcing a 4.7% dividend increase for its Class B shares. The new payout will be $9 a share per year, up from $8.60 a share. The publisher of its namesake newspaper and operator of the Kaplan education services firm, also said it will repurchase 750,000 of those Class B shares of which there are about 8.1 million outstanding. Good news to be sure, but trading near $450 Washington Post isn't a realistic investment for most retail investors.

    Tiffany and Washington Post share something else in common. Warren Buffett is an investor in both companies. The Oracle of Omaha purchased $250 million in Tiffany bonds early last year and his Berkshire Hathaway (NYSE: BRK-A, BRK-B) holding company is the largest Washington Post shareholder.

    For more information about Dividend Genius, visit http://www.dividendgenius.com. To see the latest special offer from Dividend Genius, visit: http://www.dividendstockblog.com/dividend-genius-video.html

    Disclosure: no positions
    Stocks: GHC, TIF, BRK.A, BRK.B
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