I am insisting on it or I will leave, (after several decades of ownership), because I need the money to live on. To Hell with all those buybacks. We want, need and deserve those dividends.
Look at the Giant Div that Apple paid out. This buyback #$%$ needs to take a breather,and give shareholders a Giant boost,even in form of a special div,along with a 50% hike to present payout.
divies and buybacks are the same, both are return of capital to the owners (stockholders)
divies (and buybacks) reduce the overall total value of the company as they result in less capital under the control of the company. Just like if you take money out of the bank and give it to your kids, it ultimately only reduces their inheritance.
Why is it YOUR needs that should be accomodated. I want the dividend cut and buybacks increased. That allows XOM to give me cash when I want (and when I want to be taxed) or I can let my % ownership increase and capture that value later (again, when I want.) If YOU want cash now, sell a few of your shares. Keep the rate at X% of your shares per year and your invesment value over time will remain the same and you get your cash. Meanwhile, i don't have to pay taxes on divies I dont' want.
divies do not inherently raise the stock price. A stable, ongoing dividend is a 'continuous' return of capital to ownership. It is the stability of this cash stream AND the fact the the companies return on capital is high is what drives long term value. Have you ever noticed that every time a dividend is given, the share price drops accordingly the next open? I am not saying divies are bad. But they are only the company giving you back your own money (and getting taxed for it.)
I think you'll get an additional 2 cents a quarter. The rest of the money that should belong to ALL the shareholders will be dedicated to that ridiculous buy-back so management can achieve its EPS goal without actually growing the company. All that $ wasted and still XOM cannot achieve an all-time high.
From what I read in the business sites and the newspapers, XOM is due for a hefty dividend increase.This move could increase this stocks value many fold and end the current sluggishness.The management can do both- play with the buyback and still raise the dividend adequately.
Very good point! I believe the hindrance to XOM's advancing stock price is demand. Why buy XOM with a 2.6% dividend yield, when you could buy TOT @ 5.5%, BP @ 5.4%, RDS @ 5.3%, or COP @ 4.5%. You would be carrying the same general risks as if you owned XOM.
With the numbers of baby-boomers heading toward retirement I have to believe those who are financially sophisticated must be looking for long term cash flow from dividends. XOM needs to position itself to offer a product that is competitive with its rivals. The quicker they do it the better off they will be.
Last year's 20% dividend increase was an acknowledgment that they needed to address the situation. If XOM sees it the way we see, 20% increases will continue until the dividend yield nears the industries' average. However, knowing XOM, 20% per year will be the maximum.
This prediction is for entertainment purposes only.
The BuyBacks are shybacks. Another Bull Sheet trend is the stock always goes down following record breaking earnings. Double the dividend and we go neck and neck with CVX,above 120 per share,then we can have another split.
The dividend should be a dyslexic version of the current amount...$0.75 instead of $0.57.
RexT needs to stop trying to artificially prop up ineffective mgmt. with ineffective buybacks and pay share holders!