Buybacks are just one way to reward you

Article Excerpt

Generally, investors are right to welcome share buyback plans, which help to give them a bigger stake in the company, but also tend to push up the price of their shares. However, depending on the company, there are better ways to reward shareholders. (See below for such an example.) While activist firm Elliott Management has called on eBay to expand its buyback plan in order to add value for shareholders, it has outlined a different course of action for another of its target firms, Evergy. Elliott wants its board to spend more on operations than on repurchasing shares. Both plans should set investors up for long-term gains. EBAY INC. $38 is still a buy. The online auction company (Nasdaq symbol EBAY; Finance sector; Shares outstanding: 796.1 million; Market cap: $30.3 billion; Dividend yield: 1.7%; Takeover Target Rating: Medium; www.ebay.com) due to pressure from activist investors Elliott Management and Starboard Value, has completed the sale of StubHub. That business lets users buy and sell tickets to live…