> Stock buybacks are substantially equivalent to dividends There's a whole theory on this: https://www.investopedia.com/terms/d/dividendirrelevance.asp https:

> Stock buybacks are substantially equivalent to dividends There's a whole theory on this: https://www.investopedia.com/terms/d/dividendirrelevance.asp https://www.investopedia.com/terms/d/dividendirrelevance.asp The easy way to see it is if all shareholders reinvest dividends, it's the same as a share buyback, only with the broker buying shares on your behalf rather than the company, and your ownership of the company includes a bonus fractional share. Dividends are also a bit of an accounting game. You can pay yourself a "dividend" whenever you want buy selling shares. This is only 95% true, but if your share in a company just entitled you to 65 cents, the share is probably worth about 65 cents less since the money came from somewhere.