12 ms·
> Dividends are totally fine (from my perspective) FWIW, companies are now opting for buybacks because it is more "tax efficient". Stockholders have to pay ta
by timmg 9mo ago
> Dividends are totally fine (from my perspective)
FWIW, companies are now opting for buybacks because it is more "tax efficient".
Stockholders have to pay taxes on dividends (immediately) but only pay capital gains on share price increases and only when they sell.
- disgruntledphd2 9mo agoYeah I know, I just think that's a poor use of tax policy. The only case where buybacks make sense to me is for companies that give employees RSUs, in which case buybacks compensate for the dilution.