Dividend-News

Daily dividend news for investors in dividend stocks


January 2019 Data Update 8: Dividends And Buybacks - Fact And Fiction

Published Sun, 10 Feb 2019 08:24:05 -0500 on Seeking Alpha

In my series of data posts, I had always planned to get to dividends and buybacks, the two mechanisms that companies have for returning cash to stockholders, at this point, but an op-ed on buybacks by Senators Schumer and Sanders this week, in the New York Times, will undoubtedly make this post seem reactive. The senators argue that the hundreds of billions of dollars that US companies have expended buying back their own shares could have been put to better use, if it had been reinvested back in their businesses or used to increase wages for their employees, and offer a preview of legislation that they plan to introduce to counter the menace. Like the senators, I am concerned about the declining manufacturing base and income inequality in the US, but I believe that their legislative proposal is built on premises that are at war with the data, and has the potential for making things worse, not better.
The Buyback Effect: Benign Phenomenon, Managerial Short-Termism or Corporate Malignancy? The very mention of buybacks often creates heated debate, because people seem to have very different views on its causes and consequences. All too often, at the end of debate, each side walks away with its views of buybacks intact, completely unpersuaded by the arguments of the other. The reason I believe is that our views on buybacks are a function of how we think companies act, what the motives of managers are and what it is that investors price into stocks.
a. Buybacks are benign
If... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
SPDR DOW JONES INDUSTRIAL AVERAGE ETF TRUST 265.92   0.0 0.00 5.42 2.05
SPDR S&P 500 ETF 292.23   0.0 0.00 5.24 1.80
PROSHARES ULTRASHORT S&P 500 31.23   0.0 0.00 0.00 1.16
PROSHARES ULTRAPRO SHORT S&P 500 28.66   0.0 0.00 0.00 1.16
POWERSHARES QQQ TRUST SERIES 1 189.71   0.0 0.00 1.45 0.77

SPDR DOW JONES INDUSTRIAL AVERAGE ETF TRUST - DIA
SPDR DOW JONES INDUSTRIAL AVERAGE ETF TRUST - DIA  


Older articles featuring Spdr Dow Jones Industrial Average Etf Trust (DIA):
Of Slopes And Flops: The Yield Curve Inversion
InvestED: Ep. 207- Inverted Yield Curve
March 2019 Yield Curve Update
When A Yield Curve Inversion Means Recession
Ignore The Yield Curve, They Said...
Is The U.S. Yield Curve Signaling A U.S. Recession?
Right-Side Up Again? The Latest On The U.S. Treasury Yield Curve
Market Update: Yield Curve Focus
Short And Sharp: Yield Curve Inversion - A False Positive?
Is An Inverted Yield A Harbinger Of Bad News?

More