Comment on CITI: There are 2 ways America's biggest companies dole out cash to shareholders — and one is way better than the other

CITI: There are 2 ways America's biggest companies dole out cash to shareholders — and one is way better than the other

REUTERS Companies that consistently buyback their shares outperform those that regularly pay dividends, according to Citi's Tobias Levkovich. Buybacks have helped support stocks at times when mutual funds and other large investors backed off. Critics of buybacks say that they're often done solely to meet Wall Street's earnings-per-share estimates and help company executives earn bonuses tied to stock performance.

 

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