THE FINANCE GHOST: Bear markets are for buybacks

  • 📰 FinancialMail
  • ⏱ Reading Time:
  • 17 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 10%
  • Publisher: 63%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Shareholder returns vary drastically based on management’s discipline in capital allocation. In this bear market, seek out cash-generative companies that can take advantage of these conditions

In finance theory, you learn about dividends and the “bird in hand” concept, which suggests that investors prefer dividends to larger capital gains because they are banking a return at an earlier stage and with more certainty.

But here’s the thing: if the company has great investment opportunities available, you technically shouldn’t want dividends. The company should retain all earnings and invest them at a rate that exceeds the cost of equity . In doing so, the company is seen as a “compounder” that generates strong returns over many years...

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 20. in MY
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

THE FINANCE GHOST: MultiChoice vs the streamersThere’s no guarantee that the likes of Netflix and Disney+ will become economically attractive. Is this a winner-takes-all industry, or does everyone (but the consumer) simply suffer? By FinanceGhost FinanceGhost The days of free to air TV trumped the era of these cut-throat streaming pirates with their questionable fare
Source: FinancialMail - 🏆 20. / 63 Read more »

Jack Ma’s Ant eyes life as a financial holding companyFintech juggernaut will be much diminished, with policymakers dramatically curbing its growth in consumer finance
Source: BDliveSA - 🏆 12. / 63 Read more »