Hacker News new | ask | show | jobs
by Bostonian 1337 days ago
Another, tax-advantaged, way for a company to return money to shareholders is through share buybacks. Investors should add net buybacks to dividends to assess how much a company is "yielding".

A company should be reinvesting most profits when there are strong growth opportunities (for example Tesla), and paying out most profits when there are not (for example tobacco companies).