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Google has been doing stock buybacks for years. Why are they pivoting to also doing a dividend? Bigger short term stock bump?
by advisedwang 2y ago
Google has been doing stock buybacks for years. Why are they pivoting to also doing a dividend? Bigger short term stock bump?
- ilrwbwrkhv 2y agoAll out of ideas. Slowly they will produce less and less real world value but the share price will go higher and higher.
- fancyfredbot 2y agoDifferent shareholders have different preferences for how money should be returned to them. A buyback is tax efficient but very abstract as the share price may actually fall during a buyback meaning that it's harder to see the money being returned to you. With a dividend you actually get cash in your brokerage account which is much more visible, even if you have to pay tax on it immediately. I guess appealing to both groups of investors is better than appealing to just one?