Bloggintervju 23 - Defensiven!
Jag har fått äran att ingå i en intervjuserie med Sveriges största ekonomibloggare.
Diageo (DEO) Dividend Stock Analysis
Munken analyserar Diageo (varumärken som Smirnoff, Guiness och Baileys).
Buy in to Buybacks
Inlägget hänvisar till undersökningar som visar att både utdelningsaktier och aktier med återköp på lång sikt slagit index.
"Firms have three choices to deploy excess cash: invest back into the business, distribute the cash as a dividend, or buy back shares. [...] In practice, we know that managers are often poor stewards of shareholder capital, more concerned about empire building than achieving a high and sustainable return on invested capital, so dividends are an important way to keep management on a tight leash. [...] better to boost earnings per share through a lower number of shares outstanding than waste it on ill-advised acquisitions.
[...] A more dubious reason for management to utilize buybacks rather than dividends is that a buyback increases the value of management stock options while dividends dilute it. [...] So when screening for firms that utilize share buybacks, it is important to make sure that the net amount of shares outstanding actually decrease, rather than screening for cash flow spent buying back stock. Otherwise, some of that cash flow used to buy back stock may not be enough to offset the dilution from new issuance as part of employee-stock ownership plans."