Dividends create a taxable event for everyone that owns the stock. Buybacks only create a taxable event for the shareholders that wish to sell. And the share

Dividends create a taxable event for everyone that owns the stock. Buybacks only create a taxable event for the shareholders that wish to sell. And the share price doesn't slide down because there are now less shares on the open market. Theoretically the market capitalization decreases by the amount of money spent on the buyback. Also, if you issue a dividend the market expects that dividend to be ongoing, hell or high water. Share buybacks do not have that social expectation, so the "temporary" nature of them is an asset for companies that don't want to go from a growth stock to an income stock.