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No the shareholders own the company so they “own” the cash either way. Buybacks and dividends return control of the cash back to shareholders so they can alloca
by jdsully 7y ago
No the shareholders own the company so they “own” the cash either way. Buybacks and dividends return control of the cash back to shareholders so they can allocate it elsewhere.
- walshemj 7y agoNot exactly a 10% buy back is not 100% guaranteed the same return as a 10% dividend - and this Ignores the time value of money.
- aliston 7y agoTheoretically an x billion dollar dividend results in the exact same outcome for a shareholder as an x billion dollar stock buy back. Not sure the time value of money factors in.
- nostrademons 7y agoDividends are not guaranteed either - companies can and do suspend dividends whenever they have cash flow or profitability problems.