Here's an example with $TGNA (TEGNA Inc) how useful share buybacks are. The business will not grow in the future but it can still return cash to shareholders. And every year dividends per share have been increasing.
But the company did not increase total dividends. It is still around $80 million a year (on roughly $500 million in cash flows).
What the company is doing instead is buying back shares.
Shares outstanding fell by 25% over the past twelve months and the dividend per share was raised by the same amount.
At this rate, the dividend can be doubled in 3 years without spending more. ... Show More
