WE FIND US BEFORE a financial scenario interesting and, to some extent, disconcerting: although global dividends reached a new record in 2023, companies they opted for spend considerably less in the buyback of their own Actionsaccording to the latest annual Share Buyback study by Janus Henderson.
The American companies topped the list in terms of share buybacks in 2023, representing 70% of the world total. However, this figure is qualified by a significant reduction compared to previous years.
The technology companies Americans, including giants like Microsoft and Meta, sharply scaled back their buyback programs, suggesting a shift in financial strategy of these companies.
The United Kingdom, for its part, also experienced a decline in share buybacks in 2023, although some entities such as HSBC and Barclays managed to offset these reductions with significant increases in their buyback programs.
In contrast, Europe is showing growing interest in share buybacks, with countries such as Italy, Spain and Norway recording record increases in these programs.
This trend could indicate a renewed preference by European companies towards this form of returning capital to shareholders.
On the other hand, Asian companies, especially those in Asia-Pacific without Japan, seem to show a lower propensity to carry out share buyback programs, with a marked year-on-year reduction in this regard.
The British-American asset management group, led by Ali Dibadj, notes that share buybacks are used by many companies as a way to return excess capital to shareholders without committing to long-term dividends.
However, the decline in these programs may be influenced by factors such as rising interest rates and prudent corporate debt management.
Although the data suggests a downward trend in share buybacks, it is important to analyze this phenomenon in context. Companies are seeking the right balance between capital expenditure, financing needs and shareholder returns. Only time will tell if these trends continue or if we witness a paradigm shift in corporate financial strategies.
MASTERCARD, WHICH IN Latin America is led by Andrea Scerch, is offering new products for the fintech industry with its Engage program and the Fintech Express platform, offering financial technology companies a fast and transparent path to build cutting-edge payment solutions. With Engage, partners have access to exclusive resources and self-service tools to accelerate their digital migration and deploy next-generation technologies. On the other hand, Fintech Express simplifies card issuance and will soon offer additional solutions, allowing fintech companies to launch products in just 15 days.
BANCO DEL BAJÍO has taken an important step by announcing the payment of a cash dividend and a share repurchase program. With a dividend of 5.55 pesos per share, shareholders will receive a significant return, highlighting the commitment of the bank, led by Edgardo del Rincón Gutiérrez, to generating value for its investors. Additionally, the share buyback program demonstrates confidence in Banco del Bajío's financial strength and long-term growth potential.
TOTAL PLAY, RAISED one billion pesos (58.5 million dollars) with the sale of a short-term bond on the Institutional Stock Exchange (Biva), a sign of confidence in the positive prospects of the business and its solid financial position. With a coupon linked to the TIIE plus 200 basis points, the company seeks to refinance a previous issue and take advantage of market conditions. This move demonstrates Total Play's ability to adapt and optimize its financial structure for the benefit of its investors.
THE AIRPORT GROUP of the North Center (OMA), passenger traffic suffered a decrease of 1.5% in the first quarter of 2024, especially affected by Hurricane Otis, with Acapulco leading the decline with 52.6% fewer passengers. Despite these challenges, the Group led by Ricardo Dueñas recorded a 7.2% growth in aeronautical and non-aeronautical revenues, highlighting an 11.6% increase in commercial activities.
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