Dividends4Life: Dividend Stocks Buying Back Their Own Shares

Dividend Stocks Buying Back Their Own Shares

Posted by D4L | Wednesday, September 04, 2013 | | 0 comments »

In addition to dividends, company management might want to use some incoming profits to buy back shares of the company, and thus decrease the number of shares outstanding, and therefore increased the percent ownership of each share. All else being equal, share buybacks boost EPS, and are functionally similar to reinvested dividends, but are treated better than dividends under current tax law.

This is a non-exhaustive list of five more select companies that are both paying dividends and regularly buying back shares: Becton Dickinson (BDX), Lowe’s Companies (LOW), J.M. Smucker Co. (SJM), Target Corporation (TGT) and Texas Instruments (TXN).

Source: Guru Focus

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