In today’s briefing:
- Shareholder Returns Will Increase over June AGM, but Will Companies Hold up with Sluggish ROE?
Shareholder Returns Will Increase over June AGM, but Will Companies Hold up with Sluggish ROE?
- In addition to too much cash on hand to begin with, ROE is expected to continue to grow at a sluggish pace, as shareholder returns are less than profit growth.
- Given that we expect more companies to have stock price, P/B, and ROE on the agenda for the June AGM, more companies are expected to announce increases in shareholder returns.
- However, ROE is unlikely to increase significantly. Shareholder returns are certainly too small, but a more serious problem is the inability to find growth investment opportunities.
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