Do Buybacks, Dividends Hurt Productivity?

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June 18 (Bloomberg) -- Wintergreen Advisers Founder David Winters discusses stock buybacks and dividends on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

Winters.

He manages the wintergreen fund.

He's focused on cash.

Rising dividends are past their due date.

Lord corporations continue to shift cash back to shareholders.

A great non-call for the first quarter.

It still continues.

You go to work everyday assuming the party continues?

If you own the right businesses with the right management at the right price, we call it the trifecta.

Life gets better.

And i write that a properly grown company, you essentially start with a 7% yield as you see what they do with their cash?

Absolutely.

They should generate cash and the cash is the shareholder's money.

If they are smart about it, hopefully they grew that coupon.

It goes back to total return.

You do you live in a single-digit world?

2-3% yields.

If you are lucky, you will make 3%. we have not seen that.

What kind of world is it?

Returns are going to go up.

Inflation will go up.

If you own the right businesses that have the ability to print a coupon, a growing coupon, your returns can be very favorable.

What did you learn from john templeton?

He was an amazing guy who said you have to look all over the world.

You can't just sit in one country and select from those securities.

We are in a dynamic world -- i just got back from asia.

There is so much going on.

Can i use u.s. multinationals as a proxy for emerging market investment?

It's a fine way to go.

If you are trying to get your confidence up.

There are fabulous companies that are domicile.

We love denting overseas.

-- genting overseas.

It is a first-class company.

We find that we can dig around and find these great businesses that trade cheaply.

A bloomberg surveillance exclusive.

This text has been automatically generated. It may not be 100% accurate.

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