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A shareholder can also reinvest dividends. Doesn't that accomplish the same thing as not participating in a buyback?
by Thorrez 6y ago
A shareholder can also reinvest dividends. Doesn't that accomplish the same thing as not participating in a buyback?
- nmfisher 6y agoOnly if the company allows them to (or is simultaneously raising capital). Also I believe (though not 100% sure, depending on where you are) that income tax is paid on dividends, irrespective of whether you subsequently reinvest.