4 ms·
Not exactly a 10% buy back is not 100% guaranteed the same return as a 10% dividend - and this Ignores the time value of money.
by walshemj 7y ago
Not 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.