Many experts claim that buybacks don't work. To the contrary, just about everybody pounds the table on dividend yields. Why don't investors look for a high buyback yield?
When reading over the Lorillard (LO) earnings released on Monday, I was shocked to read that Q3 earnings were increased by $.18 due to the share buyback plan. Wow! That's real earnings for each remaining stockholder. And to top that off, stockholders aren't paying taxes on these earnings gains.
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Disclosure: Long CB and LO. Please review the disclaimer page for more details.