Shareholders can gain from DBS buying back shares, even at record prices
Shareholders benefit when companies actively manage capital, whether through dividends or share buybacks
CALL me agnostic. I am happy to receive extra cash, be it from my employer, the government or a company whose shares I hold.
Like many retail shareholders, I welcome listed groups rewarding shareholders with higher dividends on the back of business growth. Cash received can be used to fund new investments, or to treat oneself.
Is it a no-brainer then that a listed group with excess capital should choose dividends over share buybacks, especially as many retail investors in the local market are dividend-fixated?
Copyright The Business Times. All rights reserved.
Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Vanity Fair Fashion.
