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Re: Here's how end this thing folks
Quote:
Originally Posted by LessinSF
When the amount of gain per share to an investor in market value after the buyback is less than what could have been paid with the same money as a dividend. I understand that studies show this mostly to be the case with stock buybacks. i.e. not a suggestion.
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Interesting. Neither is creating value, but that suggests that buybacks squander it. I gather that some companies don't like paying dividends because they think investors will expect them regularly. Maybe they prefer buybacks as a one-time thing?
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“It was fortunate that so few men acted according to moral principle, because it was so easy to get principles wrong, and a determined person acting on mistaken principles could really do some damage." - Larissa MacFarquhar
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