Off the top of my head WF can earn $1 billion CAD in trough markets. Presently a small fraction goes to divs. But, most co's can easily allocate 1/2 of cash to this and one day WF will I suspect. Today? That's about $5/share.
That 5.6% yield implies a $120 cad type ceiling in poor markets.
My point on buybacks is that if you cancel 50% of shares... near term given torque to panels etc... that same
allocation of cash is worth $10/share. Put a 11% yield on this and it's much more than a $120 ceiling.
mgmt will choose this as they are mandated to hold large volumes of shares. CEO role is 3x salary in mandatory shares as I recall.
so, this is why this happens. Arbitrage ops abound but hey it's a multi year play. I'm not looking to run at anyone but captital intensive businesses rarely thrive doing the "Norbord thing" of big divs -- they were beneficiaries of a consolidated and disciplined market, which is not lumber. That must be tamed, and it will be.
last of all things like sell side guys (Sean, Paul, etc) don't wag the dog. Marketing and branding is about intent not 3rd party sign off. They need to show intent that their capital allocation strategy is reasonable and suitable.