4 ms·

Isn’t this already taxed since it’s income? Can someone explain to me the obsession with buybacks and not dividends?

• gruez 6y ago
  >Isn’t this already taxed since it’s income? Buybacks confer additional advantages as well. The gains can be deferred, which can be advantageous when saving for retirement because your marginal tax rate when retired will likely be lower (because less income). For foreign investors, buybacks aren't subject to withholding tax. For the executives, buybacks also benefit them because their compensation tend to be tied to shared price.