> Corporations should only return cash to investors (via dividend or stock buyback) if they do not have a high yield way to invest the money internally. *It sh

> Corporations should only return cash to investors (via dividend or stock buyback) if they do not have a high yield way to invest the money internally. *It should be noted that this is true due to the tax code rather than some underlying economic principle. Dividends are taxable whereas reinvesting is a tax deduction.