4 ms·

Buybacks are more tax efficient.

• prewett 9y ago
  Might be more tax efficient, but I've seen a lot of companies buy back shares when the shares are high. Aside from high growth companies (which aren't usually buying back shares), that's value-destroying. Buy high, then sell low via options... With that kind of buybacks, I'll take the dividends, thanks.
  • klipt 9y ago
    > value-destroying If you believe it's bad for the buyer (the company) then it must be good for the seller (you, if you participate in the buyback).
• komali2 9y ago
  Hmm, I appreciate your comment because it resulted in me looking into it and learning more. However as a result I've found that such a blanket statement is slightly dangerous - the [1]investopedia article goes into some good scenarios towards the bottom under "Additional Considerations." [1]http://www.investopedia.com/articles/active-trading/073015/dividend-versus-buyback-which-better.asp http://www.investopedia.com/articles/active-trading/073015/d...