Seeking Alpha
  • jsijimmy
    Share buybacks are a poor use of shareholders money. Much better to buy other companies, invest in new research at $PFE, or pay dividends.
    8/22/13
    Reply (7)
    • bdy: or maybe it depends on the current share price of the company ?
      8/22/13
    • losbronces: Yes, if your own company is the best value available; then retiring shares makes sense. The problem is indiscriminate buyback programs.
      8/22/13
    • Rubenov: ^^ Yep. I believe dividends are more of a waste myself. I do like receiving them though.
      8/22/13
    • bd4uandu: Buyback replace dilution of executive option compensation. Taxes are different for income and cap gains.
      8/22/13
    • Energysystems: It depends how it is executed. From 1993-2013, $AFL has gone from 620M outstanding shares to 465M.
      8/22/13
    • Energysystems: All while raising the dividend for the past 30 years with a very small payout ratio.
      8/22/13
    • losbronces: Yes, execution is the key. We've all seen companies buying back at high prices and there is no sense to that.
      8/22/13