It can really be seen as another form of dividend (or payout) depending on how you look at it. And yes it is fairly common when capital is available especially

It can really be seen as another form of dividend (or payout) depending on how you look at it. And yes it is fairly common when capital is available especially when no major re-investment opportunities present themselves that would utilize the capital in more efficient ways than mere buybacks. Edit: a bit off topic but this "discussion" between Theil and Schmidt in my opinion highlights why companies are buying back their stock https://www.youtube.com/watch?v=PsXFwy6gG_4 https://www.youtube.com/watch?v=PsXFwy6gG_4