7/1/2024
By Charles Payne CEO & Principal Analyst

When I began on Wall Street, a hefty dividend showed financial strength and confidence. Typically, management returned slightly more to shareholders via dividends than stock buybacks, but the last time was in 2009.

Now, it's all about stock buybacks, and it's projected to become even more pronounced.

Shareholders (Might) Revolt

With interests higher and valuations through the roof, executives of prominent corporations are obligated to rethink buying back their shares rather than boosting their dividends. That means less buying to hold up share prices, but it also would maximize cash that’s often squandered buying overvalued stock (even your own).

Case In Point

Walgreens Boots Alliance (WBA) spent $14.0 billion between 2017 and 2019 on their shares priced between $80 and $60. I do not know what ills the company, but something tells me the $14.0 billion squandered on the stock could have helped. That’s the best way to reward shareholders.

To read the full report, contact your account representative or email Info@wstreet.com.

Charles Payne
Wall Street Strategies

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