US companies equity returns based on use-of-cash
Companies using their cash to pay dividends and buying back shares have seen their stocks massively outperforming the S&P 500 over the last 30 years. Those using cash for M&A have been underperforming.


Image upload
Source: Syz Group; Goldman Sachs
Jonathan Garcia's avatar
Is it a life cycle thing? The companies that do R&D and Capex would at some point switch to buybacks and dividends.
Todor Kostov's avatar
@toasty_trading Potentially, this happens sometimes.
Dave Ahern's avatar
I guess that’s what makes $CNSWF such an outlier and a great business.
Dave Ahern's avatar
I enjoy these charts and nuggets you share with us, please keep them coming 🙏🙏
Todor Kostov's avatar
@ifb_podcast Sure, you are welcome!

Author

Related