QVML - Data Update 7 For 2023: Dividends Buybacks And Cash Flows

2023-03-09 03:17:00 ET

Summary

• Put in a logical sequence, dividends should be the last step in the business sequence, since they represent residual cash flows.
• The most intuitive way to think about potential dividends is to think of it as the cash flow left over after every conceivable business need has been met (taxes, reinvestments, debt payments, etc.).
• If the end game in taxing buybacks is to change corporate behavior, trying to induce investment more in their businesses, it will be for the most part futile, and if it does work, will do more harm than good.

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