In my last post I discussed dividends which are one method which company management can use to return value to shareholders. The other main method is what is known as stock buybacks. The official term is share repurchases, but I’ll use buybacks as that is the term most commonly used. I’ll first define stock buybacks, […]
Dividends – Why they aren’t “free money”
In this article, I introduce the concept of dividends. Dividends are often stated as a major source of investment return. In this post I’ll address: How dividends are commonly portrayed Define dividends Show an example of the reality of dividends Address how dividends can be deceiving How dividends are often portrayed (“Free Money”) Dividends are […]
