And Republicans think there is literally nothing wrong here.

(http://www.autoadmit.com/thread.php?thread_id=5603671&forum_id=2...id#48145555)

Should these DIVIDEND ARISTOCRATS get the GUILLOTINE???

https://www.nasdaq.com/stocks/investing-lists/dividend-aristocrats

(http://www.autoadmit.com/thread.php?thread_id=5603671&forum_id=2...id#48145589)

(http://www.autoadmit.com/thread.php?thread_id=5603671&forum_id=2...id#48145599)

A lot of these companies that have been paying dividends forever lose sight of what it actually is: a portion of their earnings that can’t be better utilized in the business being paid to shareholders.

For companies that have lots of debt or need significant reinvestment, the high dividend is an albatross. The management keeps the dividend high to appease the shareholder base, but they won’t cut it when they need the money in other places - so instead they keep paying it and drain their coffers further in order to keep an arbitrary rating that props their stock price up.

I’ve seen it too many times to count / can’t really comment in this case specifically but it’s a known issue.

This is why many companies are shifting their dividend policy away from a fixed amount to a variable dividend based on FCF or they do a low regular dividend and sometimes pay out large cash amounts after assessing the situation.

(http://www.autoadmit.com/thread.php?thread_id=5603671&forum_id=2...id#48145839)

This also gives you “dry powder” if it the future you need financing, you can issue shares.

Unless you own your company 100% outright, you’re leveraged. Share buybacks reduce leverage. Sometimes you should reduce leverage, sometimes you should increase it.

Source: I’m an Economist

(http://www.autoadmit.com/thread.php?thread_id=5603671&forum_id=2...id#48145627)

https://www.globaltimes.cn/page/202403/1308605.shtml

Listed companies in China strengthen share buybacks in a move to stabilize capital market

China's A-share public companies have increased stock buybacks in an effort to shore up returns for their shareholders amid regulatory calls to protect broad investors and promote stability in the market.

On Sunday, up to 20 listed companies announced plans to buy back their shares, setting a new record in terms of the number of new buyback plans released on a single day, the Securities Times reported on Monday.

So far this year, the Shanghai Stock Exchange has announced 521 plans by listed companies to buy back shares and increase stock holdings, surpassing last year's total 405 buyback cases.

Companies listed on the Shenzhen Stock Exchange have disclosed 420 buyback plans, with a total sum of 40.7 billion yuan ($5.67 billion), according to financial data provider Wind.

By repurchasing shares, the companies can reduce the number of outstanding shares, meaning higher earnings per share which will attract more investors, analysts said.

****

I bet the JEEEEEEEEEEEEEEEEEEEEEEEEWS did this too, eh?

(http://www.autoadmit.com/thread.php?thread_id=5603671&forum_id=2...id#48145737)

Put another way, companies can and do hold stock in other companies all the time-- presumably they think they're getting a good value on it. It's a weird lib fetish that a company can own stock in every company EXCEPT itself.

(http://www.autoadmit.com/thread.php?thread_id=5603671&forum_id=2...id#48145711)

Just give divvies

(http://www.autoadmit.com/thread.php?thread_id=5603671&forum_id=2...id#48146176)

The issue themselves millions of dollars in stock, the company does meh, so they invest what little profit they have to buying back stock, sto the stock price stays flat - so tehy reward themselves with more stock - and the cycle repeats and repeats.

(http://www.autoadmit.com/thread.php?thread_id=5603671&forum_id=2...id#48148203)

The problem lately is that during the zero interest rate period they were issuing massive amounts of debt to finance the buybacks. It’s no different than scam artists taking out home loans for straw purchasers and keeping the money for themselves. Any retard can figure out that scam.

Of course none of this has to do with whatever OP is screeching about.

(http://www.autoadmit.com/thread.php?thread_id=5603671&forum_id=2...id#48148920)