Quote:
Originally Posted by GregWeld
You younger guys may want to look at NIKE (NKE).... They just raised their dividend 14% -- split the stock 2 for 1 -- and announced they'd buy back 12 BILLION dollars worth of their own stock.
I don't own it - and have never done any research on it - and this isn't really a recommendation since that's not what this thread is about.... but some of you are looking for "growth" stocks vs dividend payers.... and a company like this has some of both. It certainly fits the criteria of "best of breed" and "things you know".
LOL
|
I was thinking the same thing Greg but then heard an interesting opinion on the radio today. It was a CNBC talking head (I think it was Kevin O'Leary) and his point was that all that cash for the buyback would far benefit the shareholders more if it was paid out in dividends. It kind of made sense in that a buyback lowers the number of outstanding shares thereby HOPEFULLY increasing the value of each one while a dividend is getting actual cash in the mail. He said he would rather get a check than simply a chance that his shares might become worth more. He also said that a buy back benefits the insiders of the company more than a dividend increase and somehow helps them in the options market too (that one is over my head). It is a good point if you think about it but what are your thoughts on it Greg?