Re:What is Dividend Payout Ratio and why is it important?
by Bostonian on Friday October 21, 2022 @07:35AM
(#33286928)
Another, tax-advantaged, way for a company to return money to shareholders is through share buybacks. Investors should add net buybacks to dividends to assess how much a company is "yielding".
A company should be reinvesting most profits when there are strong growth opportunities (for example Tesla), and paying out most profits when there are not (for example tobacco companies).
A company should be reinvesting most profits when there are strong growth opportunities (for example Tesla), and paying out most profits when there are not (for example tobacco companies).