On January 19 New Residential Investment Corp (NYSE:NRZ) gave investors a rare thing to like so far this year. After months of a plunging stock price, management stepped in announcing a $200 million share buyback saying the "current stock price is at a significant discount to the value of our company". I view the buyback as a smart move as it takes advantage of an undervalued share price and boosts management's credibility.
The recently announced New Residential share buyback is highly positive in my opinion. While demonstrating management is willing to take action to boost the share price despite reducing assets under management, the company also takes advantage of a low share price valuation and significant dividend savings due to the high yield on the stock. Keeping in mind that buyback completions always remain optional, investors need to keep an eye out to make sure that management does go ahead and complete the buyback as announced.
Source: Seeking Alpha
Related Articles:
- 5 Dividend Stocks To Beat The Wall Street Giants
- A Disciplined Approach To Dividend Growth Stocks
- 5 Low Beta, Higher Yielding Dividend Stocks For The Next Downturn
- 7 High-Yield REITs With Growing Dividends
- 26 Income Securities For A Well-Rounded Asset Allocation
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Many companies have been suspending their dividends during the COVID-19 crisis, and in many cases it is understandable. In times of economic...
-
“Research shows that dividend cuts are associated with significant share price declines on announcement,” Cornell University Professor of Fi...
-
While near-term fluctuations in the stock market can be unpredictable, dividends are one of the few reliable sources of market returns. Stoc...
-
AbbVie (NASDAQ:ABBV) is in the midst of a transition. AbbVie began life about a decade ago when it was spun off from health care and medical...
-
With interest rates at historic lows and bond-yields heading down quickly, the payouts from dividend stocks are becoming more and more appea...
-
Warren Buffett has said the best time to sell is never, and though he often doesn't follow his own rules -- as the recent sale of all th...
-
Looking for survivors in the high-yield midstream space? This general partner just dropped down $48M in trucking assets. Management is guidi...
-
Dividend investing is a great way for investors to earn reliable income. Dividend stocks tend to have stable, cash-generating business model...
-
We’ve pulled up the details on some of Oppenheimer's recommendations. These are stocks with a specific set of clear attributes, that fre...
-
When considering stocks to highlight today, I wanted to find five growth stocks that not only pay attractive dividends but also have above-a...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.