4 ms·
When you factor in stock buybacks -- which are sort of but not quite the same as dividends -- it's "sort of" like 3%. (My vague understanding is that for compl
by saalweachter 6y ago
When you factor in stock buybacks -- which are sort of but not quite the same as dividends -- it's "sort of" like 3%.
(My vague understanding is that for complicated and silly reasons, many more companies have preferred stock buybacks to dividends in recent decades, but it's still money flowing back from companies to investors.)
- jfengel 6y agoThat's a very good point. Thank you; I had missed that.
- imtringued 6y agoThere are two factors. The tax code favors one form of compensation and low interest rate money means it is actually possible to execute this strategy. When companies borrow money to skip taxes you know that the central bank isn't doing its job properly.