---
title: "Presidential Income"
url: https://independentstockanalysis.com/presidential-income/
description: "Markets are closed today for President’s Day. The activity this week will be interesting following Friday’s flat stock market and commodity-lower…"
published: 2013-02-18
updated: 2013-02-18
---

# Presidential Income

Published 2013-02-18

Posted on

by

J.J. Butler

Markets are closed today for President’s Day. The activity this week will be interesting following Friday’s flat stock market and commodity-lower divergence.

“…accumulate income-generating assets whose income by itself may generate enough cash that you don’t have to liquidate anything. Dividend growth stocks are exactly those kinds of assets.” [Dividend Monk](http://dividendmonk.com/february-2013-interview-with-david-van-knapp/)

Stock buybacks are often considered a sibling to the dividend: Why Investors Need to Understand “Total Yield” ([Josh Brown](http://www.thereformedbroker.com/2013/02/14/why-investors-need-to-understand-total-yield/)). Except in real life, The Terrible Timing of Share Buybacks ([Barron’s](http://blogs.barrons.com/stockstowatchtoday/2013/02/14/the-terrible-timing-of-share-buybacks/)). In short, stock buybacks executed when shares trade at good valuations with a strong business franchise work out exceedingly well. Otherwise, look out! (Soapbox: The tech company which annually gives out 4% of outstanding shares to employees as compensation and then spends all free cash flow to repurchase 4% of shares is a sham, not profitable and to be avoided.)

[Loews](http://en.wikipedia.org/wiki/Loews_Corporation) has bought back 70% of outstanding shares over the last four decades. Further, Loews [dividend](http://ir.loews.com/phoenix.zhtml?c=102789&p=irol-dividendHistory) is 12X the level of twenty years ago.

The holiday might a good day for the true long term investor to spend a few hours of due diligence on each of [FNV and L](https://independentstockanalysis.com/stocks-for-the-long-run/).