RE:RE:Freddie/JD Capex, Divy, Buybacks opinionchurchofnutsacc wrote: I do not agree with token dividends. Every last cent of free cash flow should go to paying down debt so that when the price of oil retreats (and it will), you are well possitioned to return capital back to shareholders. If you are not going to pay down debt at $90 oil, then you are never going to pay down debt.
Wouldn't it be nice to make money and earn divvies at $60 oil, and not have to rely on $90, or $100 oil?
My thoughts are more focused on what the market will do. Nutall and others have used the phrase "meaningful" shareholder returns. It's been talked up all over the place. My thought is, whether it's the right mgmt approach or not for a particular company, the market will reward those with meaningful returns and punish those without.
long term, I agree with you. Pay down debt. Short term, meaning 18 months, those that implement decent dividend yields will see their stock price rewarded