Large-Cap Hardware Stock Buybacks Don't Pay Off

In general my firm is very bullish on companies with stock buybacks and especially ones that contribute to reaching lofty net payout yields (combination of net stock buybacks and dividends). Studies such as this one show that buybacks contribute along with dividends to the ability to predict future alpha. Unfortunately the off-the-cuff results from the last 15 months suggest the hardware and communications equipment sub sector of tech doesn't benefit from buybacks, at least in the short run. 

Read the full article at Seeking Alpha. 

Disclosure: Long AAPL, CSCO, and MSFT. Please consult your financial advisor before making any investment decisions. Please review the disclaimer page for more details. 


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