Buybacks and dividends both return capital to shareholders. In each case, the board and management are making the conscious choice to return capital rather than

Buybacks and dividends both return capital to shareholders. In each case, the board and management are making the conscious choice to return capital rather than reinvest in the business. Mostly because they don't have a good internal investment to make that will generate returns. Investors can diversify and risk allocate for themselves. Dividends are nothing like bond coupons. Coupons are guaranteed, tax treatment for both payor and payee is quite different.