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No, because dividends don't benefit from compounding stock prices. If you buy back your stock from 20 -> 80 a share vs. having paid out the same amount in divi
by brockwhittaker 7y ago
No, because dividends don't benefit from compounding stock prices.
If you buy back your stock from 20 -> 80 a share vs. having paid out the same amount in dividends, the share buybacks yield a much greater income than dividends, which once paid no longer compound unless individual investors re-invest them.