1D·

Is Nestle Crazy?

$NESN (-0,36%) in the last 5 years is issuing 10billion of debt, repaying 3 billion of debt, paying out 7 billions in dividends and buy back its shares for 5-10 billions. Each year.


Someone can explain me why should this make sense? Taking on debt to pay interests and then paying it out as dividends where shareholders pay taxes.

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Debt is cheaper than equity. Point.

Especially when it comes to interest rates...
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