[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Rose Celine Investments 🌹 [@realroseceline](/creator/twitter/realroseceline) on x 7996 followers Created: 2025-07-25 15:01:28 UTC When Buybacks Backfire: Why $DLO Chose Dividends Instead Stock buybacks are often seen as a shareholder friendly move. When executed well, they boost earnings per share, signal confidence, and return capital efficiently. But buybacks can also work against long term value creation, especially in companies with low public float. That’s exactly why $DLO has avoided them. Low Float, Big Problem $DLO is a high margin, cash generative business with significant growth potential in emerging markets. But its float, the number of shares actually available for trading, is extremely low. Insiders and founders still control the majority of the stock, which means any share repurchases would further reduce the already limited liquidity. That matters. When liquidity dries up, volatility increases, institutional investors are deterred, and price discovery becomes harder. It also risks concentrating ownership too far, making it harder for a broader base of investors to participate in upside, or even enter a position. Instead of buybacks, $DLO opted for a cash dividend. It’s a clear, recurring return of capital that still rewards shareholders without tightening float further. Given the company’s healthy cash flows and high ROIC, this makes sense: they can grow, retain strategic flexibility, and still return value. Why Dividends Made Sense for $DLO Preserves liquidity: They don’t shrink float further. Signals strength: A recurring dividend shows sustainable cash generation. Invites stability: Long term funds prefer cash flow visibility over financial engineering. In short, buybacks are not always a one size fits all strategy. For companies like $DLO with low float and growth ambitions, dividends can be the smarter and better way to reward shareholders. 🌹 I promised to write an article, hope this explains it @Nichola30641241 XXXXX engagements  **Related Topics** [quarterly earnings](/topic/quarterly-earnings) [celine](/topic/celine) [$dlo](/topic/$dlo) [Post Link](https://x.com/realroseceline/status/1948760518837371004)
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Rose Celine Investments 🌹 @realroseceline on x 7996 followers
Created: 2025-07-25 15:01:28 UTC
When Buybacks Backfire: Why $DLO Chose Dividends Instead
Stock buybacks are often seen as a shareholder friendly move. When executed well, they boost earnings per share, signal confidence, and return capital efficiently. But buybacks can also work against long term value creation, especially in companies with low public float. That’s exactly why $DLO has avoided them.
Low Float, Big Problem
$DLO is a high margin, cash generative business with significant growth potential in emerging markets. But its float, the number of shares actually available for trading, is extremely low. Insiders and founders still control the majority of the stock, which means any share repurchases would further reduce the already limited liquidity.
That matters. When liquidity dries up, volatility increases, institutional investors are deterred, and price discovery becomes harder. It also risks concentrating ownership too far, making it harder for a broader base of investors to participate in upside, or even enter a position.
Instead of buybacks, $DLO opted for a cash dividend. It’s a clear, recurring return of capital that still rewards shareholders without tightening float further. Given the company’s healthy cash flows and high ROIC, this makes sense: they can grow, retain strategic flexibility, and still return value.
Why Dividends Made Sense for $DLO
Preserves liquidity: They don’t shrink float further.
Signals strength: A recurring dividend shows sustainable cash generation.
Invites stability: Long term funds prefer cash flow visibility over financial engineering.
In short, buybacks are not always a one size fits all strategy. For companies like $DLO with low float and growth ambitions, dividends can be the smarter and better way to reward shareholders.
🌹
I promised to write an article, hope this explains it @Nichola30641241
XXXXX engagements
Related Topics quarterly earnings celine $dlo