In today’s briefing:
- For the Time Being, Stronger Shareholder Returns Are an Incentive for the Stock Price to Rise
For the Time Being, Stronger Shareholder Returns Are an Incentive for the Stock Price to Rise
- While cash flow has improved, companies haven’t found promising investment opportunities. Continuation of a rigid dividend policy is another factor that further increases cash on hand.
- Given that the already high level of cash on hand is expected to build further in the current fiscal year, there is room to increase shareholder returns considerably.
- For many companies, it is not easy to find new sources of investment other than through M&A, and shareholder returns are the most effective way to reduce cash.
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