This is because investors should be looking not at relative value, but for the same highabsolute returns that they would require of similarly risky equities.
Clothing and footwear prices to U.K. consumers rose year-on-year in September for the first time since March 1992, hitting a two-year high in absolute terms, say the official data.
If investors are willing to reward companies that pay dividends by buying their shares, then companies with high relative cash holdings in addition to absolute cash levels would do well to listen.