Why Investors Should Get More Excited About Share Buybacks

Wise investors always value dividends, but many investors don’t realize that share buybacks can be just as valuable as dividends, and in some cases, more so. Dividends are in fashion with investors, and that’s a good thing. But it’s odd that while investors periodically crave cash dividends, they rarely get excited about stock buybacks.

Agrium’s headquarters is pictured in Calgary on May 7, 2014. The company has been very active in buying back its own stock over the past few years. The Canadian Press/Larry MacDougal

Wise investors always value dividends, but many investors don’t realize that share buybacks can be just as valuable as dividends, and in some cases, more so.

Dividends are in fashion with investors, and that’s a good thing. But it’s odd that while investors periodically crave cash dividends, they rarely get excited about stock buybacks.