Daily Archives: November 24, 2016


Foreign Investors Should Prefer Share Buybacks Over Dividends

The two main ways companies reward shareholders is via dividends or buybacks. There has long been a debate about which of the two is better. Both have there advantages and disadvantages and that is why many blue chip companies use a combination of the two. Buybacks Vs Dividends Dividends – When a company pays a dividend, it is essentially giving a share of its profits to its owners/shareholders. Dividends are usually paid at regular intervals and the best blue chip companies grow their dividend over time. Buybacks – A share buyback refers to the purchase by a company of its shares from the marketplace. As a result of a buyback […]