01-30-2015, 02:22 PM
(01-30-2015, 01:58 PM)DividendGarden Wrote: Today, CVX announced that they will suspend share buybacks for 2015. It seems that many companies do buybacks when shares are higher, but suspend or cut buybacks when shares are cheap. Your thoughts on CVX's announcement today?
http://seekingalpha.com/news/2260886-che...-3-percent
I agree with the decision. Maintain cap-ex where needed to keep growth projects going and preserve the dividend first. Buybacks are a bonus when extra cash is available.
I agree it's better for them to buy low than buy high, but I think this is the prudent thing to do in the current operating environment.