I hate that idea. Companies have a long history of buying back shares at the wrong time (when their stocks are at high valuations). Meanwhile, few companies were repurchasing shares in 2008 and 2009 or in the second quarter of last year. Studies show that companies typically wait until their stock prices are high to buy their shares back, which is not a good use of capital. If there is excess cash, pay it to shareholders in a dividend. Let them decide whether the stock is still a good buy. And with corporate free cash flow forecast to rise 29% in 2021, companies will have lots of extra cash. Now for Something Special... Don't be surprised if you see special dividends in 2021. Companies with excess cash will occasionally pay a special dividend in addition to their regular one. For example, Costco (Nasdaq: COST) has paid a special dividend three times in the past five years, including a $10 per share special dividend in December. If it appears that tax rates will increase on dividends next year, I suspect a lot of companies will distribute cash to shareholders in the form of a special dividend. Lastly, I have predicted that the next few years will see higher inflation than most people are expecting. The Federal Reserve has stated that it is going to allow inflation to rise more than usual before it taps on the brakes by raising interest rates. So owning Perpetual Dividend Raisers - companies that raise their dividends every year - will become more vital to maintaining and increasing your buying power. (To help you get started, I've assembled a special collection of resources I like to call my Ultimate Dividend Package. The wealth-building secrets available in these reports and videos are available to you for free - no credit card, no nonsense - if you watch my short video here.) Owning a stock with a 3% yield and a dividend that doesn't budge will erode your buying power after just two years of what is currently historically low inflation. If we return to the average inflation rate of 3.1%, your 3% yield means you can buy fewer goods and services next year than you could this year. However, if you own a stock that grows its dividend by 8% or 10% per year, you are actually increasing the buying power of that dividend over time. And if you reinvest the dividend, compounding goes into overdrive when the company boosts the payout every year. There will likely be some important changes on tax and economic policy down the road. I don't expect anything drastic in 2021. But you should be thinking about the moves to make now so that when they happen, you're not left scrambling, trying to better protect your money. Good investing, Marc P.S. Make your first move today. Protect your buying power by investing in Perpetual Dividend Raisers - I'm even giving away the tools you need to start. If you want free access to my Ultimate Dividend Package, click here. | 
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