Herbalife Ltd. (NYSE:HLF) is following up its excellent earnings report for 1Q 14 with another, very shareholder friendly move.
The company’s decision to cancel two years’ worth of dividends and use the cash saved of about $216 million in share buybacks during May and June, could result in an aggregate buyback bonanza for shareholders of over $500 million during Q2.
Buybacks in lieu of dividends
Barclays analysts Meredith Adler and Sean Kras, in their April 29, 2014 research note on Herbalife Ltd. (NYSE:HLF) call the decision to replace future dividends with current buybacks an “interesting step.”
“Clearly, this is a sign of the financial health of the business, as well as an indication that the company views its shares as undervalued,”...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
