Charter rewards shareholders
Charter Communications (CHTR) has been rewarding its shareholders with share buybacks. In the first quarter, the company repurchased 2.9 million shares worth $1.0 billion. Since September 2016, the company has repurchased ~$20.7 billion of its common stock.
Charter thinks that share buybacks have been a good opportunity to invest in the business. The company would also look at accretive merger and acquisition opportunities to create a good return on capital.
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Share repurchases are considered a more tax-efficient way to enhance shareholders’ returns compared to dividend payments. Repurchasing shares results in a decline in the number of a company’s outstanding shares, which boosts its EPS. As you can see in the above chart, Charter reported an adjusted EPS of $1.11 in the first quarter—compared to $0.70 in the first quarter of 2018.