A $40m buy-back is better long-term than handing out $40m to shareholders as a dividend.
At least a $40m buy-back increases EPS (less shares on issue). What long-term benefit does a $40m dividend to shareholders have on the share price in 2 year's time?
If the share price is, say, $8 in 2 year's time, a $40m buy-back at $4.70 is in actual fact a $70m buy-back - 8.5 million shares taken off the register is worth $70m at $8.
Share buy-back, page-4
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Last
$6.90 |
Change
0.045(0.66%) |
Mkt cap ! $4.959B | |||
| Open | High | Low | Value | Volume |
| $6.86 | $6.93 | $6.81 | $2.594M | 377.3K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 17 | 4138 | $6.89 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.90 | 4535 | 5 |
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| Last trade - 12.09pm 17/07/2024 (20 minute delay) ? |
| A2M (ASX) Chart |