How Companies Pay Shareholders: Total Shareholder Payout A Better Approach?
How Companies Pay Shareholders: Total Shareholder Payout A Better Approach? Share Share Source: AP Photo/Elise Amendola Is there a metric or series of metrics which captures the best of what we learn from looking at the buybacks factor, but avoids some of its shortcomings? Net Payout of Profits just might fit the bill. This metric looks at the percent of profit which is distributed versus the percent of profit which is kept. Don’t misunderstand – I’m not referring to money reinvested – I’m referring to profit after reinvestment. Companies can distribute profit, or “save” i...
Source: townhall.com