Spending cash on share buy-backs boosts earnings per share immediately, whereas a capital-investment programme may actually reduce earnings in the short term.

ECONOMIST: American profits have been high but the trend may not last

Not long ago, the business was about leveraging capital and growing earnings per share, says the CFO of an American bank.

ECONOMIST: CFO in focus, March 2009

We looked for companies that had both quarterly and annual reductions in outstanding shares, a price-to-earnings ratio of less than 25, three-year earnings per share growth of more than 15% and debt to total capital of less than 30%.

FORBES: Ten Buyback Stocks To Buy