Shareholder distributions, defined as total dividends plus gross share buybacks, amounted to $259.8 billion for S&P 500 companies at the end of the third quarter — the highest quarterly total of shareholder distributions in at least ten years. The second highest total was recorded back in April 2014 when distributions hit $252.2 billion. For income investors, this is good news. Corporations are now returning a record amount of cash to investors — what’s not to like? Well, as it turns out there’s a lot not to like, especially for those investors seeking capital growth, as a recent research report from Factset INSIGHT…
If You're Looking For Capital Growth, Avoid Dividends
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk