Comments on: Buybacks vs. Dividends

By: Dividend Tree

Dividend Tree — Wed, 18 Feb 2009 20:17:41 +0000

The poll results are cannot be considered as valid. With one extra vote to buyback, how can it be said that buyback was 45% while dividends only 41%? my conclusion would be, due to lack of data set it is an just observation, and no conclusions can be drawn.

By: Weekly Carnivals and Such | The Dough Roller

Weekly Carnivals and Such | The Dough Roller — Sat, 10 Nov 2007 15:29:36 +0000

[...] Buybacks vs. Dividends @ Fat Pitch Financials. Isn’t the “obvious” choice buybacks, so long as the company doesn’t do something stupid with the stock, because buybacks don’t have an immediate tax consequence while dividends do? I should have voted! [...]

By: George

George — Thu, 23 Aug 2007 22:07:58 +0000

Zack, I just posted a similar question to the one you suggested regarding the relative performance of large cap versus small cap stock. You can find the poll about large cap vs. small cap vs. international stocks at Value Investing News right now.

By: Festival of Stocks at My Wealth Builder - Fat Pitch Financials

Festival of Stocks at My Wealth Builder - Fat Pitch Financials — Thu, 16 Aug 2007 03:56:03 +0000

[...] Saver featured my post on the Value Investing News poll on Buybacks vs. Dividends. Be sure to vote on this week’s poll on the recent collapse of Delta Financial’s [...]

By: Zach

Zach — Sun, 12 Aug 2007 02:34:12 +0000

I would be curious to know if your readers expect large cap (maybe measured by the S&P 500 or Dow) or small cap (Russell 2,000 or S&P 600) will outperform in the second half. We’re seeing a flight to quality which has the Dow outperforming, but that may not hold up into the end of the year.

Thanks for the hard work and good insight.
Zach

By: David

David — Thu, 09 Aug 2007 01:18:19 +0000

Possibly, I better question would be:
When evaluating the future prospects of a company, what is more important to review:
The trend in dividend increases over time or
The trend in buybacks over time

By: Drew

Drew — Wed, 08 Aug 2007 15:55:40 +0000

This question is impossible to answer without some information about the company. It is ridiculous to assume one is somehow “better” than the other.

If a company believes it shares are trading at a significant discount to intrinsic value then buying back shares would be more appropriate.

If a company believes it’s shares are trading at a premium to intrinsic value AND they cannot find a way to deploy this excess capital for above market returns they should return the earnings to their owners as dividends.