To: rnsmth who wrote (20829 ) 10/2/2014 11:09:23 PM From: JimisJim 1 RecommendationRecommended By sm1th
Read Replies (1) | Respond to of 34328 <It can have an impact, both in support of share price and in support of dividend increases - increasing the per share payout at a greater rate than the absolute number of dollars paid out.> roni, I have known you for many years now, and have the utmost respect for you and your trading skills, but I just can't agree with the above assertions without some supporting data or examples. Supporting share price? Maybe, but very hard to quantify, and far from guaranteed, IMO. Supporting dividend increases? Even more nebulous, IMO. Increasing share payout at a greater rate than the absolute number of dollars paid out? I'm not even sure what you mean by that. My firm belief/assertion is that I would ultimately have both more money and higher income stream if instead of share buybacks, they give me the money -- that's something I can track and quantify immediately, and don't have to wait for float reductions to kick in or the company to decide how much capital to deploy to share buybacks and/or increasing the dividend.d I fail to see how the absolute number of dollars I receive from money paid to me directly in the form of dividends is going to be less than the fuzzy effects from share buybacks. I'm not saying buybacks don't have positive effects, just that I see more money directly from putting all that buyback money into dividends now that go into my pocket so that I can find even better values in other company shares to buy, or into reinvested divvies compounded that have immediate impact increasing my overall income stream. What am I missing? Can you walk me through the math?