Some investors love large dividends. Some like to see strong revenue growth quarter over quarter. Others look for management teams they believe in. There are a hundred different metrics or indicators investors look for in a company or throughout the economy that makes them believe one stock will before better than another.
One that I haven't mentioned, but is very important to some investors, is share buybacks. While this form of returning capital to shareholders, the other being dividends, is questioned by many as whether it is the best use of company capital, in a lot of cases it’s a better use of capital than letting it just sit in the bank or even worse wasting it on risky acquisitions.
Regardless though of your stance on share buybacks, the fact remains they are a huge part of investing. They affect per share earnings, a company's ability to offer a higher dividend, and while, in most cases very small, they give investors a larger piece of the pie. Continue reading "3 ETF's That Focus on Share Buybacks"