Should investors avoid companies that spent billions on share buybacks as new taxes take effect?

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Should investors avoid companies that spent billions on share buybacks as new taxes take effect?
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In the absence of attractive investments, it makes sense to return cash to shareholders, either as dividends, or by repurchasing shares, experts say

, which spent billions on share buybacks in 2021, or view it as political theatre and ignore it.

Dan Hallett, vice president of research and principal at Highview Financial Group in Oakville, Ont., also says the tax won’t make much difference and is political posturing that demonstrates a misunderstanding of corporate finance. Mr. Hallett says companies reinvest profits if they believe they can do so profitably with the result being higher revenue and profits. In the absence of attractive investments, it makes sense to return cash to shareholders, either as dividends or by repurchasing shares. It’s a reward for the company doing well.The advantages of buybacks

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