3 ms·
Dividends are sticky: once the level is set, they are expected in perpetuity and any reduction is assumed to be indicative of poor performance or future perform
by arbitrary_name 7y ago
Dividends are sticky: once the level is set, they are expected in perpetuity and any reduction is assumed to be indicative of poor performance or future performance. Buybacks have the benefit of not having that expectation attached.
- perl4ever 7y agoSure, that's what I was alluding to, but I think it's obvious that the difference is not necessarily beneficial. People make commitments for valid reasons, and they are usually worth something.