from Breakingviews:

Why buybacks should be banned

By Edward Hadas
September 16, 2014

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

from Breakingviews:

European CEOs should avoid starving capex for divis

August 13, 2013

By Robert Cole

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

from The Great Debate:

The dark side of bank dividends

May 8, 2013

In April, U.S. banks dusted off the dividend again, a trick they’d mostly abandoned during the financial crisis. JPMorgan Chase plans an 8-cent-per-share hike. Wells Fargo’s will be 5 cents. Same for Morgan Stanley. Bank of America will raise its dividend a penny. Some might celebrate the move: The banks are back! But there’s more to it. In this fairly anemic economy, dividends are yet another strategic, if counterintuitive, hedge that won’t get our loved and loathed financial institutions lending again anytime soon.

from Reihan Salam:

To create growth, unleash the invisible foot

By Reihan Salam
March 1, 2013

Across the political spectrum, there is a growing recognition that while short-term battles over government spending are important, they would be far less ferocious and intense if our economy were growing at a faster clip. But while conservatives and liberals alike clamor for more growth, they disagree about how to produce it. The key is unleashing what the economist Joseph Berliner once called the “Invisible Foot,” the neglected counterpart to Adam Smith’s “Invisible Hand.”

from Breakingviews:

Dividend reform won’t fix China SOE money-go-round

February 6, 2013

By John Foley

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

from Breakingviews:

The 1 pct find a way to stimulate themselves

December 5, 2012

By Agnes T. Crane

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

from Breakingviews:

Corporate America fears taxes more than recession

November 29, 2012

President Barack Obama is seeking input from Corporate America on the so-called fiscal cliff. But whatever company honchos may be saying about the risk of recession in 2013 if tax hikes and spending cuts kick in on Jan. 1, it looks as if they actually fear higher taxes more than a downturn.

from The Great Debate:

When customers are angry, how do companies justify shareholder payouts?

By Michael Maiello
November 7, 2012

As tens of thousands in the New York metropolitan area remain powerless amid a massive cleanup campaign after Hurricane Sandy hit the region, Consolidated Edison, the utility that powers about 3.3 million customers in New York City and Westchester County, reported earnings and reaffirmed its guidance for 2012. Kevin Burke, Con Ed’s chairman and chief executive officer, said that the company was devoting all its resources to aiding Sandy’s victims. The company’s bottom line, though, seems secure, despite the costs of cleanup.

from Global Investing:

Yield-hungry tilt to equity from credit

April 2, 2012

For income-focused investors, the choice between stocks and corporate bonds has been a no-brainer in recent years. In a volatile world, corporate debt tends to be less sensitive to market gyrations and also has offered better yields -- last year non-financial European corporate bonds provided a yield pickup of  73 basis points above stocks, Morgan Stanley calculates.

from The Great Debate:

Why the bank dividends are a bad idea

By Anat Admati
March 14, 2012

On the basis of "stress tests" it ran, the Federal Reserve has given permission to most of the largest U.S. banks to "return capital" to their shareholders. JPMorgan Chase announced that it would buy back as much as $15 billion of its stock and raise its quarterly dividend to 30 cents a share, up from 25 cents a share.