tag:blogger.com,1999:blog-8152901575140311047.post1680468706899614664..comments2024-03-29T07:41:47.433-04:00Comments on Musings on Markets: January 2017 Data Update 9: Dividends and BuybacksAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-8152901575140311047.post-16728706700639988122017-02-18T15:07:20.217-05:002017-02-18T15:07:20.217-05:00Having read a lot of your articles & classes, ...Having read a lot of your articles & classes, I am sure this is a good one (I just glanced at it now - will read fully soon). But the bottom line question is "however decisions are made - on auto pilot or on a me-too basis" - what is the long term (10-20y) total return to the investors from companies returning capital to investors vs those who do not. Seems like the "forced discipline" stops companies from stupid decisions (such as Cisco in the late 90s).<br /><br />On a side note, the country comparisons is fairly meaningless as there are so many differences as to make it wholly irrelevant. The sector one is much more useful. <br /><br />Thanks<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-53405070000180485682017-02-16T12:58:28.123-05:002017-02-16T12:58:28.123-05:00Hi Professor -
In the opening paragraph, you say ...Hi Professor - <br />In the opening paragraph, you say that "the decision of how much to pay on dividends is made either on auto pilot or on a me-too basis." What do you mean by a me-too basis? Thanks for your clarification.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-53168448472136839112017-02-08T17:07:01.176-05:002017-02-08T17:07:01.176-05:00Hi teacher. What is your advise on a company that ...Hi teacher. What is your advise on a company that is mature, almost declining but needs to make large investments to update their technology and products in order to survive. It is a family owned busines where the stockholders need the dividend for their personal needs and are not willing to make reinvestments on the small cash available. Thank you<br />pollamundialistahttps://www.blogger.com/profile/16510941844904992040noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-6633380919713913622017-02-08T13:12:01.157-05:002017-02-08T13:12:01.157-05:00Hi Professor,
Just a quick high-level question - ...Hi Professor,<br /><br />Just a quick high-level question - how are you computing share buybacks for the market and/or sectors/industries? Tried to go through some of your data sets, but the $ amount of buybacks for any given year seem to be hard-coded. <br /><br />How do you parce-out buybacks vs. new share issues vs. stock comp etc. and the price at which shares were bought back (from a higher-level, market/industry perspective)? <br /><br />Thanks again for all you do!<br /><br />RyeCay23https://www.blogger.com/profile/10472602003071124655noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-54725556560809150352017-02-08T11:42:04.951-05:002017-02-08T11:42:04.951-05:00Policymakers are wrestling with how to tax corpora...Policymakers are wrestling with how to tax corporations. The effective tax rate varies dramatically by industry in the US, and multinationals are good at evasion through foreign tax havens. That should be distorting the tax burden, employment, savings rates, and therefore probably yields, and economic growth.<br /><br />It seems much simpler if we dropped the corporate tax entirely, but taxed dividends and capital gains as ordinary income. If the owner of a US stock is foreign, then their holding are still taxed. In order to reduce the preference for choosing capital gains over dividend payments in order to forestall shareholder tax payments, corporations would have to pay a tax on buybacks and savings that exceed some threshold (maybe the greater of % of value or % of capital investments).<br /><br />That seems to me more straightforward than either current corporate tax policy, or the proposed border adjustment tax plan. Why wouldn't it work?Anonymoushttps://www.blogger.com/profile/01440015860187489523noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-71148211474445432212017-02-08T04:43:14.976-05:002017-02-08T04:43:14.976-05:00What source(s) have you used for non-US buybacks? ...What source(s) have you used for non-US buybacks? I've always struggled to get hold of anything for markets other than the S&P. Also, is your analysis based on gross buybacks or net? ThanksDuncan Lnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-90560062033933613832017-02-06T20:03:34.144-05:002017-02-06T20:03:34.144-05:00Mike,
I don't think I will be there. I have a ...Mike,<br />I don't think I will be there. I have a cray busy semester with two very big classes. I am sure that we will run into each other or if you are close to NYU, drop by. I will be glad to sign it for you.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-85266219762074291922017-02-06T13:02:36.984-05:002017-02-06T13:02:36.984-05:00Great post professor! I especially liked the endin...Great post professor! I especially liked the ending on the explanation of early equity markets, very interesting. Also, any chance you will be attending the FMA conference in March in NY, NY? I would love for you to sign my copy of The Little Book of Valuation if you're there!Anonymoushttps://www.blogger.com/profile/13410653759771109335noreply@blogger.com