Stellantis (SJ.TO) is praised for buying back 16% of its shares over 5 years, achieving a 125% total return, and is noted for its long-term dividend growth policy in essential products like railway ties and utility poles.
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6 companies with generous share buyback programs
Dividend GuyMar 15, 2026
The creator discusses six companies with generous share buyback programs, analyzing their performance and capital allocation strategies. While buybacks can boost EPS, they are not a guarantee of returns and the underlying reasons for them, such as debt financing versus cash flow, are crucial to consider.
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CGI Inc. (GIB.TO) has seen its stock price decline despite revenue and EPS growth, with concerns about AI's impact on the IT sector, though the creator believes CGI can leverage AI.
Canadian National Railway (CNR) has underperformed, and its strategy of issuing debt to buy back shares is viewed skeptically, raising concerns about capital allocation and balance sheet health despite its solid business.
Alimentation Couche-Tard (ATD) has a strong balance sheet and a history of acquisitions, maintaining a generous dividend growth policy while buying back shares, though its yield is small.
Canadian Natural Resources (CNQ) is praised for its prudent management, paying down debt before returning capital via dividends and buybacks, resulting in strong returns and reduced share count.