Analysts and Bankers like commissions from stock churnAs retail investors bail out the brokers make money on the transition - that is why they promote share buybacks versus dividends - brokers don't make money when you buy and hold to collect dividends -so you think share buybacks are going to make a difference with about 250 million shares outstanding - do the math- it is going to take several years of buybacks to make a significant difference even if they do spend the entire $135 million previously allocated for dividends in buybacks this year (that would reduce the share count by about 20 million shares) - they already mentioned acquisitions in the press release - do you really think they will put the dividend savings entirely towards buybacks - not likely when they clearly have an empire building agenda - not to mention stock options to management which you can bet they will hold off awarding until the stock price dips even further in the next few days - that will bring some cash into the company if exercised but negates part of the impact of the buybacks.
Shareholders own the company - they deserve a reasonable compensation on their investment - an 18 cent yearly dividend on a stock price at 6.75 equates to a 2.67% yield - do you really think any sane retail shareholder is gong to buy this when you have blue chips like Enbridge paying 6.3% or BNS paying 5.7% - especially when you have management that has a history of cutting the dividend - as for the argument that they will grow the company with the "dividend savings" how did the last acquisition work out - is propane a growth industry with the green agenda??