2 ms·
FTFY: "they're _almost_ the same thing." Dividends lower stock price by moving cash from company to owner, buybacks increase stock prices[1] by de-diluting, so
by dvainsencher 5y ago
FTFY: "they're _almost_ the same thing."
Dividends lower stock price by moving cash from company to owner, buybacks increase stock prices[1] by de-diluting, so only one of those is evidence of the CEO (whose compensation is often tied to stock price) acting on his own interests. Also taxation is different.
[1] https://www.investopedia.com/articles/active-trading/073015/dividend-versus-buyback-which-better.asp https://www.investopedia.com/articles/active-trading/073015/...