Barry Schwartz believes a company that is increasing its dividend or buying back shares is a far better investment than one more committed to raising capital expenditures. The chief investment officer at Baskin Financial Services Inc., a wealth management firm in Toronto, thinks it’s a no-brainer.
“Have there ever been any studies showing that companies that increase capex over time outperform, because I haven’t seen one,” he said. “But I’ve seen lots of studies that show companies that buy back stock outperform companies that don’t, and companies that increase their dividend every year outperform. These things are the word of god when it comes to outperformance.” Read More…