Buybacks11 Jan 2024 11:37
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Ian Lance, manager of the Temple Bar investment trust, says: 'Over the past 20 years, Next's buybacks have reduced the company's shares in issue from 327million to 128million.
Bumper buybacks: In 2023, the FTSE 100's members, including BP, HSBC and Shell, made £57.4bn-worth of share buybacks +2
Bumper buybacks: In 2023, the FTSE 100's members, including BP, HSBC and Shell, made £57.4bn-worth of share buybacks
'As a result, the earnings per share have risen from 58p to 530p, giving an annualised growth rate of nearly 12 per cent. There's also been a 3.7 per cent annual dividend, meaning shareholders have enjoyed a 15.4 per cent a year return.'
Under buyback schemes, investors do not receive an income, but do gain a larger stake in the company, plus the entitlement to more of the dividends, since the firm's earnings per share are boosted.