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Thus, we can conclude that the boutique prices fluctuate continuously due to market forces. Thus, the more relevant measure of cash return would net out stock issuances from stock buybacks, before adding dividends. The push back that you will get from dividend devotees that while dividends go to all shareholders, buybacks put cash only in the pockets of those stockholder who sell back, but that argument ignores the reality that the it is still shareholders who are getting the cash from buybacks. These are both extremely necessary for a successful portfolio. Prior to that we had the onset of the Great Recession in 2008, which left the entire world financially and economically devastated by early 2009. Prior to that we had the bursting of the dot-com bubble in 2001-2002. My first popped bubble came in 1987, when I worked at Leland O’Brien Rubenstein (LOR), which many accused of precipitating the bursting (LOR invented “portfolio insurance”). Investors may be better off investing with a mutual-fund manager who is a great stock picker, then shorting ETFs themselves, Glen Dailey, head of prime brokerage at Jefferies Group, said, adding that this strategy would incur fewer fees. You can take your smoothies to the next level by cutting out sugary fruit juice, adding in nutrient dense greens, powering up with protein rich foods, blending correctly, and boosting your smoothie with superfoods.


Using the same logic that I used to argue that cash yields were better indicators of cash returned to shareholders than dividend yields, I computed cash payout ratios, by adding buybacks to dividends, before dividing by net income in the table in the last section, and it does show a disquieting pattern. This table reinforces the message from the previous graph, which is that both dividends and buybacks have to be considered in any assessment of cash return. It is true that companies are returning more of their net income, as measured by accountants, to stockholders in dividends and buybacks, with the latter accounting for the lion’s share of the return. Looking at the industries that are the biggest buyers of their own stock, the list is dominated by companies that derive their value from intangible assets, with technology and pharmaceuticals accounting for seven of the ten top spots. Accounting Inconsistencies: Over the last few decades, the percentage of S&P 500 companies that are in technology and health care has risen, and that rise has laid bare an accounting inconsistency on capital expenditures. The workers at the firms that buy back the most stock, tend to be already among the better paid in the economy, and tying buybacks to higher wages for these workers will not help those who are at the bottom of the pay scale.