This:
http://finance.yahoo.com/news/The-Buckle-Inc-Announces-a-iw-3165997906.html?x=0&.v=1
is a horrible idea, IMO.
This increases the shareholder's tax burden, gives cash (which is definately not wanted), and sends a message that the company cannot find decent ways to invest the capital (ie if we can't generate decent returns for shareholders, we're going to pay it out).
The buckle has historically earned huge rates of return on shareholder equity (north of 15%), there is absoutely 0 chance that I will be able to produce a similar return with this special dividend.
These kind of surprises I don't need. Annoying.
PS: Disbursement-free compounding is the best way to accumulate wealth IMO. Payouts/buyouts are a problem. The Buckle did this crap last year:
http://www.buckle.com/corporate/cor...=1408474395181084&contentId=10134198674173584 and I poured every stupid penny they paid out, right back into the company (after paying tax on it). What was the point of that??
http://finance.yahoo.com/news/The-Buckle-Inc-Announces-a-iw-3165997906.html?x=0&.v=1
is a horrible idea, IMO.
This increases the shareholder's tax burden, gives cash (which is definately not wanted), and sends a message that the company cannot find decent ways to invest the capital (ie if we can't generate decent returns for shareholders, we're going to pay it out).
The buckle has historically earned huge rates of return on shareholder equity (north of 15%), there is absoutely 0 chance that I will be able to produce a similar return with this special dividend.
These kind of surprises I don't need. Annoying.
PS: Disbursement-free compounding is the best way to accumulate wealth IMO. Payouts/buyouts are a problem. The Buckle did this crap last year:
http://www.buckle.com/corporate/cor...=1408474395181084&contentId=10134198674173584 and I poured every stupid penny they paid out, right back into the company (after paying tax on it). What was the point of that??