Not all companies are built for continuous expansion. Once a business reaches its optimal scale, reinvestment into growth—through new factories or R&D—may no longer generate the best returns. In such cases, capital is better directed to those who bore the risk: the shareholders. Sustainable value creation sometimes means knowing when to grow—and when to return cash.
Setting:
- Market Cap: >$500mio
- Dividend Yield: >4%
- Short Term: -10%-10%; Duration: 30d