Curious why people care about dividends and buybacks. I can see positive information signaling in the case of a buyback - we think our stock is undervalued. However, the transfer of cash to shareholders is mechanically a reduction in equity value, dollar for dollar with the size of the transaction. All this tells me is that the company does not have enough worthwhile projects (i.e. anything that returns in excess of its cost of capital) to spend its cash on.
3/25/15 at 7:28am