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Capital gains and dividends aren't taxed at the same rate, so the whole water air thing in the end doesnt match up for an Investor. Then theres the whole debat
by guiomie 12y ago
Capital gains and dividends aren't taxed at the same rate, so the whole water air thing in the end doesnt match up for an Investor.
Then theres the whole debate about, maybe management can't reinvest that money properly, maybe the shares will actually lose value because of this.
- Scoundreller 12y agoMy guess is that management gets bonuses based on how well the stock performs, and dividends don't get included in that calculation. So dividends will never cross their mind.
- skelsey 12y agoA buyback also raises the value of options, while a dividend is not paid to option holders.