(06-27-2022, 05:42 PM)hazard Wrote:(06-27-2022, 04:48 PM)robkelk Wrote: Also, doesn't a stock buyback reduce the amount the company has to pay to the shareholders in the future, thus letting the company spend that money on employees (yeah, I can dream) or process modernization?
No, because a stock buyback only decreases the number of shares that can partake in the dividends, but the dividends will be payed regardless, and the total size of the dividends pool does not change relative to the total number of shares.
It just means every share gets more of the dividend paid out in absolute and relative terms.
Ah. I'm so used to dividends being announced as "$xx per share" that I didn't realize that that was relative instead of absolute.
--
Rob Kelk
Sticks and stones can break your bones,
But words can break your heart.
- unknown
Boycotting all products from the USA as long as that country's leader continues to threaten to annex my native country.
Government of Canada: How to immigrate to Canada
Government of Canada: Claiming refugee protection (asylum) from within Canada
Rob Kelk
Sticks and stones can break your bones,
But words can break your heart.
- unknown
Boycotting all products from the USA as long as that country's leader continues to threaten to annex my native country.
Government of Canada: How to immigrate to Canada
Government of Canada: Claiming refugee protection (asylum) from within Canada