One of the best and most subtle ways companies reward their shareholders is through stock buyback programs, which, contrary to popular belief, are much better than dividend payouts. They are superior because they avoid the double-taxation events that dividends bring and keep capital within a business, subject to further compounding and investment in areas such as acquisitions or paying down debts.
[content-module:CompanyOverview|NYSE:WFC]When a company buys back its stock, it also allows investors to reverse engineer the reasoning behind management's desire to invest in the future of the company they run, figuring out where the upside thesis and potential may be from the timing of the decision. Today, this upside and bullish thesis is centered around the financial sector.
