How To Make Money with Stock Buybacks

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One Response to How To Make Money with Stock Buybacks

  1. Paul Bilodeau says:

    Hi Courtney,

    How does one tell what “frequent buybacks” are vs. a company that does a buyback of stock??

    Since this was in 2008, the fact that companies that still paid dividends were “down more” is not a surprise as they are using some of the money coming in the door to continue to pay the dividends and that money coming in the door probably had dried up a bit. Continuing to pay the dividend would lessen their cash position and probably make their balance sheet appear worse, and lead to a stock downturn of a greater degree than if they didn’t pay any dividend (and kept the cash for buybacks).

    How do we make money with this – by keeping in mind that we should also look for buybacks as somethign to make a stock purchase more desirable?? Or is this something to weigh in more heavily when choosing stocks using Pit Bulls of the Dow??

    Let’s make lots of money out there!!

    Paul Bilodeau

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