Episode 45
Are Share Buybacks Good for Investors?
Broken Pie Chart · Broken Pie Chart
October 12, 201919m 46s
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Show Notes
Post corporate tax cuts of 2018, share buybacks have been talked about both in positive and negative lights. Some think companies should use their free cash flow differently. But how do share buybacks benefit shareholders by boosting earnings per share?
Key Takeaways:
- What are share buybacks?
- How share buybacks increase earnings per share or EPS
- Similarities between dividends and share buybacks
- How to calculate a share buyback yield versus dividend yield
- Uses of free cash flow to equity shareholders
- Share buybacks don't get taxed at the shareholder level like dividends
- Share buybacks provide more flexibility compared to dividends for corporations
Mentioned in this Episode:
Broken Pie Chart Book by Derek Moore https://amzn.to/2MibTSk
Contact Derek Moore www.razorwealth.com