Dividends vs. Buybacks: Companies Best Use of Cash

David Bianco, chief equity strategist at Deutsche Bank, discusses the theme of cash usage in companies, focusing on dividends and share buybacks. He highlights the challenges in finding investment opportunities and the impact of the US tax code on cash accumulation offshore. Bianco predicts earnings growth and a stable market outlook, with a focus on dividend payout trends and historical changes. He concludes with a positive view for 2015, despite potential volatility.

What factors should companies consider when deciding on cash usage?

What are the implications of cash building offshore for companies?

What is the significance of share buybacks in relation to earnings growth?

How has the dividend payout ratio changed over the decades?

What is the expected trend for dividend payout ratios in the coming years?