[Leading or lagging indicator, you make the call]
http://www.nytimes.com/2015/04/14/business/dealbook/blackrocks-chief-laurence-fink-urges-other-ceos-to-stop-being-so-nice-to-investors.html [snip] United States companies spent nearly $1 trillion last year on stock repurchases and dividends, and virtually every big American company is engaged in these practices. General Electric announced last week that it would buy back $50 billion of its stock after selling most of GE Capital. Apple authorized a $90 billion buyback of its own stock last year. Exxon Mobil spent $13 billion last year on its own stock. IBM, which I’ve questioned for its aggressive use of buybacks and dividends, has spent $108 billion buying back its own shares since 2000.Rather than consider the return of all this money to shareholders positively, Mr. Fink says the move “sends a discouraging message about a company’s ability to use its resources wisely and develop a coherent plan to create value over the long term.” Moreover, he argues that “with interest rates approaching zero, returning excessive amounts of capital to investors” isn’t helpful because they “will enjoy comparatively meager benefits from it in this environment.” [snip]
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