DAL Buybacks
06-15-2019, 12:05 PM
#31
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Originally Posted by flyboy2181
Stock buybacks allow you to increase dividends without increasing the total amount you pay out. $1 mil paid out to 1 mil stockholders equals $1/share. $1 mil paid out to 500k stockholders equal $2/share. You’ve can increase dividend payouts without spending more money by buying back stock. Increasing dividend payouts and buying back stock are both good things.
06-15-2019, 12:10 PM
#32
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Originally Posted by TED74
But in this example you're not including the price paid to reduce shares by 50%. There are over 650 million shares outstanding of DAL stock. It'd cost you about $18B to buy half of those shares back. You can't "increase dividend payouts without spending more money" overall.
06-15-2019, 01:01 PM
#33
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I don’t think you can make an absolute statement that buy backs are a good thing (always). For instance, look at Stamps.com in the last 4 months. It went from $284 to $34 and they were aggressively buying back shares in the high $200s for quite a while. Is it better off for shareholders that they were doing that as a buyback or a dividend? The concept behinds buybacks is a good one, it makes your “slice of the pizza” bigger. But historically speaking buybacks have proven to not be a beneficial use of capital.
06-15-2019, 01:03 PM
#34
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Originally Posted by flyboy2181
Right. That example was for easy math. But the point is buying back stock allows you to spend the same amount of money on dividend payouts and still increase dividends. My argument is against people saying they should just increase dividend payouts. It’s a better investment to buy back stock.
06-15-2019, 01:42 PM
#35
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Originally Posted by flyboy2181
Right. That example was for easy math. But the point is buying back stock allows you to spend the same amount of money on dividend payouts and still increase dividends. My argument is against people saying they should just increase dividend payouts. It’s a better investment to buy back stock.
06-16-2019, 12:27 AM
#37
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Originally Posted by Hank Kingsley
End of the day, I'd rather fly my schedule and not take anything home but laundry. They can have all the money, I prefer time off with decent pay/benefits.
I’d love to see corporations switch to annual reporting at most, maybe even longer intervals. That might help to start wiring our society into long term thinking as these quarterly releases are just noise, for the most part (except if you’re stamps.com)
06-18-2019, 02:13 PM
#38
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Originally Posted by JamesBond
We'll be able to spark a doobie before that happens.
Because Navy summer Dress Whites and Marine summer Dress Blues is the same thing as hippies smoking doobies at Woodstock as they rage against the establishment or something.
06-23-2019, 04:56 PM
#39
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Originally Posted by gloopy
Right.
Because Navy summer Dress Whites and Marine summer Dress Blues is the same thing as hippies smoking doobies at Woodstock as they rage against the establishment or something.
Because Navy summer Dress Whites and Marine summer Dress Blues is the same thing as hippies smoking doobies at Woodstock as they rage against the establishment or something.
... and 29% of THEM got it wrong? I fear for the future of this country.
06-23-2019, 05:08 PM
#40
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Originally Posted by JamesBond
Holy Cow. That idiot had to poll the audience for that?
... and 29% of THEM got it wrong? I fear for the future of this country.
... and 29% of THEM got it wrong? I fear for the future of this country.
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