This Tech Giant Is a Stock Buyback Leader. Here's What That Means for Investors.
The argument for owning a stake in this long-leading technology name is even stronger when you look at less-obvious metrics.
How does a company provide ever-rising value to its shareholders? Most people would simply say by growing. And they'd be right.
Merely growing its top line isn't the only way a company can bolster shareholder value, though. It can be just as fruitful to simply reduce the number of outstanding shares of an organization, thus making the remaining outstanding shares more valuable by virtue of making them at least a little more scarce. Indeed, for some companies, such stock buybacks are how most of their stocks' net gains are produced.
The funny thing is, this approach to value-building isn't limited to the value stocks of cash-cow companies well known for their share repurchases. A handful of technology growth companies are just as generous in this way, with the results to prove that it matters. And one particular tech name is arguably an even better buy specifically because of its stock buyback pedigree.
