2024-01-07 13:21:22
The logo of Deutsche Telekom Image: dpa
When companies like Deutsche Telekom buy back their own shares, it provokes criticism. That is unjustified.
Share buybacks have a bad reputation in Germany. The fact that Deutsche Telekom, of all companies, began purchasing its own shares initially worth 550 million euros at the beginning of the year is causing criticism. After all, Telekom is the company that is held responsible for the poor internet connections in many regions. Wouldn’t the money be better spent there?
The argument is obvious, but it misses an important point. Stock buybacks are now more important than ever to keep investors happy. And that is crucial if companies want to secure good financing options in the future.
#Stock #buybacks #reputation