Originally Posted by
Tranquility
Several points. Firstly, I do not 100% disagree with your analysis, however, different investors value their invested capital differently and the return on said capital, in different ways. If you appreciate that viewpoint, we have a good start.
So, a company paying a dividend has no ideas? None sense imho. They just have the RECURRING LIQUID CAPITAL to pay their shareholders CASH$$$$!������. If a company doesn’t believe they have that kind of liquid capital to reward those who invest in them; offer kind words and the occasional stock buyback....
Essentially a dividend is admitting the company thinks the investors/owners will make more money on that money than the company will by reinvesting it back in to the business. I don’t want to see that. I don’t want to do the work of finding additional investments. I want the company I own to do the work for me.
Your second paragraph was somewhat contradictory. You’d rather a company not invest in their shareholders at all? Or just not in the form of a buyback and/or dividend?? Earnings growth can be diluted in so many different ways that stock buybacks become even less relevant and less potent. Cash being paid to said investor, is imho, worth more.
I dislike buybacks and dividends. I’d prefer the company reinvest back into their business to grow earnings and market cap.
I don’t support a share buyback until a pilot deal is done! Plain and simple. Rewarding those who have no real vested interest in the company before those who actually work for the company is just plain stupid. Pilots are a valuable resource these days, why waist the potential growth of the company on the few cents of EPS growth that a buyback can return?
Keep in mind who owns the company? Pilots and employees don’t own the company, the reward should go to the owners not the employees. Employees are paid to do their jobs - management sets pay rates to attract qualified candidates.
Honestly the pilots at the legacies are way overpaid. Unions have skewed the pay for many decades.