True, though investors often discount cash on hand ("a bird in the hand is worth two in the bush") because of the uncertainty of ever seeing that money. YHOO is

True, though investors often discount cash on hand ("a bird in the hand is worth two in the bush") because of the uncertainty of ever seeing that money. YHOO is probably the easiest example as of late, with their massive goodwill write downs of acquisitions. So the act of either a dividend or a buyback removes that uncertainty and can result in an increase in per share value.