The Buyback Annoyance

Stock buybacks have been the craze over the past couple of years. Ever since the Fed has flushed the economy with cheap money, corporations have been using the funds to invest in their businesses to grow, spend on mergers and acquisitions, raising or issuing special dividends, and of course, the buyback annoyance – buying back its own company stock. While a majority of the investors and traders see that as a good thing, I see it mostly as an annoyance that does not achieve much more than some financial engineering.

The Buyback Annoyance

For the readers who are unfamiliar, buybacks – also called share repurchase, is where a company decides to purchase its own shares from the marketplace, thus reducing the number of outstanding shares. The reduced number of shares in the market is good for the key-stats in annual reports as it shows an increasing earnings-per-share (EPS) value and increases the value of the remaining shares in the market. Don’t get me wrong…there is a place for buybacks in the marketplace. Without any buybacks, shareholders would see their stock value depreciate as companies routinely issue more shares thus making the value of each share just a little bit less valuable. But my annoyance has been with the degree with which we see the buybacks occurring.

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Chatter Around the World – 61

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

Emerging Market Quilt

Emerging Market Performance

 

New Blog Posts

Let’s dive into the links that caught my attention this week.

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Realty Income (O) Dividend Increase

Realty Income

Realty Income (O) announced a 0.17% increase in its cash dividends for common stockholders. The monthly dividend increases from $0.1827917 to $0.1831042. The dividend is payable on Oct 15, 2014 to shareholders of record as of Oct 1, 2014. This is the 77th dividend increase since Realty Income went public in  1994.

Realty income - annual dividends

The new monthly dividend amount represents an annualized dividend amount of approx $2.197 per share, up from $2.194. My portfolio consists of 60 shares of Realty Income and the new increase bumps up my annual dividends from $131.16 to $131.82. My yield on cost rises to 5.89%.

Chatter Around the World – 60

Chatter Around the World is a weekly curated link update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my holdings.

Wold Map - Import Based

From where countries import the most

New Blog Posts

Let’s dive into the links that caught my attention this week.

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