Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Dividend logo

What’s the best way to “value” an individual stock? Price-to-earnings ratio? Price-to-book or sales? What about its dividend yield vs. market averages? Just as there are hundreds of investors, there are hundreds of ways to find value in the market. And while the jury is out on which factor or combination of factors is the 100% correct way to find cheap stocks with real growth behind them, investors continue to search for an edge.

And they may want to add buybacks to that list.

Historically, buybacks have been lauded by many market pundits as purely smoke and mirrors, with stock grants and employee stock options often totaling more than what is retired by companies. But according to Invesco, buybacks could be an additional tool in an investor’s playbook when looking for value.

Want to learn about share buybacks? Click here.

The Other Way to Return Capital to Investors

There are really only two ways companies can return excess cash and profits back to their investors. They can pay dividends, which we all know and love. Or they can retire shares, by either buying them through private tender offerings or on the open market.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Shutterstock 470032862
News

Happy Birthday Roth

It’s time to say happy birthday. But we aren’t talking about Baby New Year. We’re talking about...

News

Orchid Island Capital Inc Sees a 21% Decrease in Dividend

Every day, companies across the globe announce upcoming dividend payouts. You can find the...

News

Procter & Gamble Co Leads 30 Stocks Going Ex-Dividend This Week

There are 30 stocks going ex-dividend this week starting Monday, Jan 15. For income investors...