Love Good Management? Check Out These 3 Stock Buyback Superstars
Buying back stock is one of those nearly surefire ways companies can help their shareholders. With stock buybacks, a company can reduce the total shares outstanding, leaving stockholders with a greater claim on a company's earnings.
For example, let's assume a company earns $100 and has 100 shares. That works out to $1.00 in earnings per share. But if the company buys back 25 shares, each share now represents $1.33 in earnings. Over the long run, growing companies with consistent buyback programs tend to deliver attractive investor returns.
Here are three companies doing just that today, and they are worth a closer look.
Source Fool.com
