Dividends signal a commitment to future dividends, which is not always preferable. So called special dividends are one-time, but they raise eyebrows Dividends

Dividends 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)