BBY - Beating The Market With High Conviction Buybacks
Dividend investing is a massively popular investing strategy, and for good reasons. After all, it has worked well over the years, and it's easy to understand why companies distributing big dividends to investors tend to produce attractive returns. If management is consistently returning cash to investors, then the business is generating more cash than it needs to retain, which is clear sign off underlying financial health.
Nevertheless, dividends are just part of the equation when it comes to cash distributions. Many companies are increasingly focusing their financial resources on buybacks as a method to return