Not true. Marc Cuban has written an excellent blog post on this: http://blogmaverick.com/2004/07/20/microsoft-dividends-and-stock-buybacks/ http://blogmaverick

Not true. Marc Cuban has written an excellent blog post on this: http://blogmaverick.com/2004/07/20/microsoft-dividends-and-stock-buybacks/ http://blogmaverick.com/2004/07/20/microsoft-dividends-and-s... Dividends reward you for holding a stock. Buybacks you when you sell the stock. I'd much prefer dividends, and if we had a better tax policy on them, I think you'd see companies do a lot less crazy #&*$ to expand into markets that they have no business in.