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eBay Stock Has A 16% Total Yield Based On Its Buybacks And Dividends

Published Fri, 14 Feb 2020 16:19:42 -0500 on Seeking Alpha

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In the past 2 years, eBay has been repurchasing $1 billion worth of stock a quarter. As a result, its shares outstanding have dropped one-third in 3 years.
The buyback yield is 14.4% based on its 2019 average buybacks. eBay's dividend yield is 1.7%. So its total yield is now 16.1% annually.
Based on this my estimate is that the stock will be worth 50% more in 2 years. This is based on the run-rate of FCF in Q4 divided by its FCF yield and 25% fewer shares in 2 years.
This model is very simple and shows the power of the... Read more