One of the observations left me a bit confused, however, with regard to the concept of total shareholder return. The writer calculates total shareholder return as the sum of stock price appreciation plus dividends plus buybacks. In this sense, the writer seems to be double-counting, because stock buybacks only benefit shareholders by reducing the outstanding share count and thereby increasing the price per share. Read More...
One of the observations left me a bit confused, however, with regard to the concept of total shareholder return. The writer calculates total shareholder return as the sum of stock price appreciation plus dividends plus buybacks. In this sense, the writer seems to be double-counting, because stock buybacks only benefit shareholders by reducing the outstanding share count and thereby increasing the price per share.
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