homeWelcome, sign in or click here to subscribe.login
     


 

 

Business



Subscriber content preview

May 24, 2006

All Business: Bulging corporate coffers risk dumb moves by CEO

  • Absent promising ventures, the logical move is for companies to distribute more cash to shareholders.
    • By BRUCE MEYERSON
    AP Business Writer

    NEW YORK — Even though Congress extended President Bush's tax break on stock dividends, a good case can be made that companies should pay little mind and focus instead on buying back even more of their stock.

    There's so much extra cash sloshing around that the nation's biggest companies are setting records of a dubious sort: Last year, interest income rose 38 percent to $15.7 billion after taxes among the 375 non-financial companies in the Standard & Poor's 500, a new S&P study shows. That total is expected to soar another 70 percent this year to $26.7 billion.


     
    . . .


    To read this story in full login or purchase a subscription.



    Previous columns:


    
    Email or user name:
    Password:
     
    Forgot password? Click here.