3 Companies Committed to Boosting Shareholder Value
Stock buybacks, or share repurchase programs, are commonly executed by companies to boost shareholder value.
A stock buyback occurs when a company purchases outstanding shares of its stock. In its simplest form, buybacks represent companies essentially re-investing in themselves.
And several companies Morgan Stanley MS, Logitech International LOGI, and Chubb Limited CB have unveiled new repurchase programs over the summer. Lets take a closer look at each.
Chubb, a Zacks Rank #2 (Buy), is the world's largest publicly traded property and casualty insurance company. Analysts have taken their earnings expectations modestly higher across all timeframes over the last several months.
Image Source: Zacks Investment Research
Income-focused investors could be attracted to CB, with shares currently yielding 1.7% annually paired with a sustainable 21% payout ratio. And the company has shown a commitment to increasingly rewarding shareholders, with the payout growing by 3.3% annually over the last five years.