Debt, Buyback and DividendsPeople sometimes don't think as debt reduction as equity increase BUT here is the simple formula
Asset - Liabilities = Shareholder Equity (As liabilities decrease equity and equity per share goes up)
Now Dividends versus Equity gains....consider the following and tell me if dividends are always the answer
You have BTE no divvy and OVV which has has a divvy all year...for $1 invested Jan4th or Nov 1st before Q3 which has provided a better return the civvy stock or NON divy stock?
From the start of the year going from $1 to $5.20 WITHOUT a dividend
OR
From the start of the year going from $1 to $1.53 WITH a dividend
REMEBER DEBT DECREASE INCREASE SHAREHOLDER VALUE!
5 Day Return (Through Q3 Results) | | | | | |
Ticker | Open Nov 1 | Current | Change | Investment | Equity Inc/Dec | Divvy | All In |
BTE | $ 4.19 | $ 4.28 | 2.1% | $1 | $0.02 | $ - | $ 0.021 |
OVV | $ 47.31 | $ 46.55 | -1.6% | $1 | ($0.02) | $ 0.0077 | $ (0.008) |
| | | | | | | |
YTD Return (Through Q3 Results) | | | | | |
Ticker | Open Jan 4 | Close Today | Change | Investment | Equity Inc/Dec | Divvy | All In |
BTE | $ 0.69 | $ 4.28 | 520.3% | $1 | $5.20 | $ - | $ 5.203 |
OVV | $ 18.63 | $ 46.55 | 149.9% | $1 | $1.50 | $ 0.0300 | $ 1.529 |