There are 275 dividend paying shares in the JSE today. They average a dividend pay-out of 3.88%.
While a 3.88% dividend is surely better than nothing - this doesn't even cover the interest you'd have received on your cash with a fixed deposit.
And, once that money is paid out by a company the money is lost to it forever.
But what if I told you there's a better option - a company that d... ››› more
On 28 March 2019 Argent Industrial announced it bought R11.5 million of its own shares back.
Rolfes Technology Holdings directors have also been on the acquisition road.
On 2 April Chris Seabrooke bought R2.3 million worth of shares in the company, and then on 9 April CEO, Richard Buttle, bought R572,764 shares back in the company.
Then there's Santova directors that have bought R13.4 mil... ››› more
Companies can do two things to return capital to shareholders. The most common way is through paying dividends. The other way is through share buybacks.
So what exactly are share buybacks? And what are the disadvantages of share buybacks?
Read on to find out…
The ins and outs of share buybacks
Share buybacks are a way for a company to return capital to its shareholders. It buys ba... ››› more
When you invest, one of the most obvious rewards shareholders receive is dividends. But this isn't the only way a company can reward its shareholders.
It can also buy back its own shares.
So what does this entail? And are share buybacks always the best thing for shareholders?
Read on to find out…
What happens with share buybacks?
When a company buys back its own shares, it mean... ››› more
Trying to find the best investment opportunities isn't easy.
You want to uncover solid companies that will perform over the years, rewarding you along the way with a rising share price and the prospect of dividends.
So what sort of things can indicate a company is going to be a top performer?
Read on to discover two signals that you should watch for…
A winning investment strategy... ››› more
Share buybacks are exactly that. It's when a company buys back its own shares that are in circulation.
Some companies insist this is good for shareholders as it boosts the remaining share price and earnings. But this isn't always the case.
Recently there have been a few examples in the US of well-known companies buying back their shares.
So what are the effects of share buybacks? And wha... ››› more
When you invest in shares, it's not just capital growth (a rise in a company's share price) you're looking for.
There are also other signs of a company rewarding its shareholders. That's paying dividends and share buybacks.
Let's take a closer look at each of these and why they're good news for shareholders…
Rewarding shareholders with dividends
Rewarding shareholders with divide... ››› more
Occasionally, companies buy back their own shares. The overall effect is it reduces the number of shares in circulation.
Some analysts believe that the company could put the money to better use. It could pay back excess company money to shareholders.
But there are some benefits of share buy backs. Let's take a closer look at what these are…
Share buy backs can boost a company’s share... ››› more
If a company announces a share buyback, many investors view this as positive news. But maybe share buybacks aren't. Generally, investors think it improves the value of the shares they hold in the company. But should the company not be using that cash for other purposes, such as paying dividends? Let's delve a little deeper…
Why some investors think buy backs are a good thing…
Let’s say C... ››› more
Stock buybacks, as the name suggests, is when companies buy back some of their own shares. Academic studies of stock buybacks show that the share price generally rises after the announcement of such a programme. And the share goes on to beat the market for several years to come. Let's take a closer look at stock buybacks and what you should do…
Two reasons why stock buybacks send the share... ››› more
Share buybacks reduce the number of a company's shares in circulation. By reducing the number of shares, the company technically increases the value of the shares left in the market. And by taking this step, the company boosts earnings per share (EPS). Some investors are sceptical of share buybacks because EPS usually forms the basis of directors' bonuses. So how can you tell if it's for the good ... ››› more
When companies buy their own shares on the stock exchange and cancel them, it's called a share buyback. And they're becoming popular again. In the States for instance, they're back at levels seen before the financial crisis. And they're picking up in the UK. But why does a company buyback its own shares? And should you be wary of the practice? Read on to find out more about share buybacks…
Sha... ››› more
Share buybacks are an alternate way for companies to return cash to their shareholders. It can replace paying dividends. It increases the value of company shares by decreasing the number of shares in circulation. As good as that might sound for shareholders, these share buybacks can often be very damaging. Read on to uncover the dark side of share buybacks…
Company bosses often like buybacks b... ››› more
If you're looking for financial clues to help you find great investments, a company that rewards its shareholders should be high up on your list. Great businesses ‘pay back' their investors. There are two main ways a company does this. Read on to discover what financial clue to look for when you're looking for a great investment…
Not all businesses use their free cash flow to reward sharehol... ››› more
Great companies reward their shareholders in two ways. This means it pays to owns shares like this. The first strategy is pretty straightforward. But the second strategy… A lot of people don't understand how it works. Let's have a lot at both of these strategies…
The thing is, not all businesses use their cash to reward shareholders… to pay their shareholders back. But the great ones do, D... ››› more
The PE ratio is a very popular ratio investor's use. But don't jump the gun! The PE ratio doesn't always reflect the true state of a company. Companies can manipulate earnings, so this affects the PE ratio. Read on to find out two reasons why the PE ratio can mislead you…
The PE ratio takes into account a company’s share price and its earnings, Phil Oakley explains in MoneyWeek.
The PE ra... ››› more
With interest rates so low, most of us would like to get a decent income from our stocks. But it could be a mistake to rely on dividend yields alone. Instead, you should consider the ‘total yield'. So what is it, and why does it matter?
It’s a mistake to just look at just the dividend yield, Chris Brightman of Research Affiliates tells Fortune. You should look at the ‘total yield’ instea... ››› more
Share buybacks are all the rage at the moment in the ‘City'. Analysts love them and present them as good news for shareholders. But experience shows that buybacks are often anything but good news. Read on to discover why…
Share buybacks can often signal that a company has run out of ideas.
Here’s how you can you tell the difference between a ‘good’ buyback and a ‘bad’ one, expla... ››› more
Just because you haven't heard from British American Tobacco in a while doesn't mean it's not doing well. In fact, British American Tobacco or BAT is South Africa's first JSE-listed company to reach a market capitalisation of R1 trillion. If you haven't already invested in this group, here's why you should…
As of next Monday, 1 April, a pack of 20 cigarettes will set you back almost R2 more, ... ››› more
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