Will the company maintain the same dollar value available for dividends which would increase the dividend percentage, or would they reduce total cash pay out but maintain the dividend percentage which is around 4% currently.
11 replies (most recent on top)
Stock buy backs will reduce the number of outstanding shares, therefore, T will save money by not having to pay dividends on the shares bought back. It will save a few hundred million a year.
The recent announcement was over the next 3 years, the will use $50B in cash for $20B in dividends, $20B in stock buybacks, and $10B in discretionary purchases (additional stock buybacks, dividend increase, or capital investment) to be determined.
less shares out there, the more the market capitalization
Stop using words you don’t understand. Market cap is unaffected by stock buybacks. It is literally share price * outstanding shares. Stock buybacks = share price goes up, outstanding shares go down. High school math.
“The stock buyback will be precisely timed for the C-Suite and other maggot officers to Sell, in an ‘orchestrated’ process. As the stock temporarily rises on the buy back purchase, the maggots will be dumping their stockpile to cash in. “
That is called insider trading and is illegal. The benefit to the C suite are the bonuses in their contracts for raising the stock price.
Stock buy backs used to be illegal as well and in my opinion those laws should be brought back.
Stock buybacks serve several purposes that have NOTHING to do with the company itself: 1.) Transfer revenue to shareholders (hint, this ain’t us with our 401ks, it’s really a payoff for major shareholders such as executives and board members), 2.) Artificially inflate the stock price temporarily — this allows major shareholders to dump garbage shares into strength, 3.) Consequence of #2, executives and senior management get kickers on bonuses for “raising shareholder value via stock price”, 4.) PR crowing about all this good work and allows a kernel of truth to financial media about “recouping capital” that somehow nevr actually gets reinvested but rather lines the pockets of the robber barins running things. It is 100% beneficial to the Clown Suite, BoD, and senior management but otherwise not particularly useful to the company.
AT&T doesn’t take a single breath unless it benefits itself. The stock buyback will be precisely timed for the C-Suite and other maggot officers to Sell, in an ‘orchestrated’ process. As the stock temporarily rises on the buy back purchase, the maggots will be dumping their stockpile to cash in. Follow their lead. If you happen to be a dim wh-t employee still holding shares of this immoral, maggot infested conglomerate, sell when they do.
Plain and simple, the less amount of shares on the open market, the less diluted the stock price is. The price is elevated through the buyback, less shares out there, the more the market capitalization. T stock then looks more attractive to investors! It's all smoke and mirrors, not much of a change for the overall company strategy!
If you don't know how this works, stock market investing is not for you. Stock buybacks are mostly a way of transferring capital from the company to people holding stock options. I will let you work out who that is for yourself. Literally the rich robbing the poor.
Raise SP and dividend payout $
The percentage changes all the time. Wouldn’t change if the damn stock price wouldn’t change.
“The calculation is done by taking the first dividend payment and annualizing it and then divide that number by the current stock price.”.
The percentage changes all the time. Too confusing. One day it's 4%. Next day it's 4.1%. it's like they changing the percentage to fake us out.
either way, do we still need to RTO?