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In theory a dividend is also price neutral. You have the dividend now but the company you owned doesn't any more. However, if someone gives you a dividend you
by fancyfredbot 4mo ago
In theory a dividend is also price neutral. You have the dividend now but the company you owned doesn't any more.
However, if someone gives you a dividend you typically have to pay tax, and lots of people really hate paying tax.
So buybacks are the preferred price neutral way of dealing with excess cash.
- paulddraper 4mo agoThe dividend amount plus share price is neutral. But before-paying-dividend versus after-paying-dividend decreases the value of a share.
- asdfaoeu 4mo agoDividends are absolutely not price neutral however most feeds correct for them.