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It's management's job to return capital to shareholders, so this is really just another day in the office
by airstrike 3y ago
It's management's job to return capital to shareholders, so this is really just another day in the office
- Timber-6539 3y agoThey can do that directly by increasing the dividends paid per share to investors.
- airstrike 3y agoDividends signal a commitment to future dividends, which is not always preferable. So called special dividends are one-time, but they raise eyebrows Dividends can also be taxed differently. There's some nuance there beyond my expertise, but generally share buybacks are taxed more favorably (although there have been recent legislative efforts to change that)