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More and more companies are moving away from dividends to buy backs so for many stocks you have to sell to realize profits.
by tcoff91 6y ago
More and more companies are moving away from dividends to buy backs so for many stocks you have to sell to realize profits.
- Animats 6y agoYes, because stock buybacks reward management with options. Dividends do not. Many countries don't allow a company to buy its own stock.
- tcoff91 6y agoStock buybacks are more tax advantageous to investors than dividends. The price goes up and you sell some shares and pay long term capital gains if you’ve held for more than a year. This is cheaper than paying income tax on dividends.