Tell me how investors' have benefited?
Great article, here are my 2 cents comment,
"Just give me dividends and let me decide for myself whether to buy more shares, keep those I own, or sell the lot."
On the flip side, there are argument that when corporates do share buybacks, shareholders can
1) do nothing, equivalent to buy more shares under dividends;
2) get synthetic dividend by selling a small portion of holdings, equivalent to keep those I own under dividends;
3) or sell the lot.
Arn't buybacks and dividends essentially the same?
If the two methods are equivalent, if we add in tax consideration, would buybacks clearly come out ahead for shareholders?
They have differing tax consequences and divide shareholders.
Agree, not a fan of buybacks, unless the share price is silly cheap (and there is usually a reason for that).
Someone please address this question at the next market call on Bloomberg. Let's put Eric on the spot.
Agreed! Let the shareholder decide how to spend their returns!
Great article helps explain what I was wondering about.
Thanks
Great article, here are my 2 cents comment,
"Just give me dividends and let me decide for myself whether to buy more shares, keep those I own, or sell the lot."
On the flip side, there are argument that when corporates do share buybacks, shareholders can
1) do nothing, equivalent to buy more shares under dividends;
2) get synthetic dividend by selling a small portion of holdings, equivalent to keep those I own under dividends;
3) or sell the lot.
Arn't buybacks and dividends essentially the same?
If the two methods are equivalent, if we add in tax consideration, would buybacks clearly come out ahead for shareholders?
They have differing tax consequences and divide shareholders.
Agree, not a fan of buybacks, unless the share price is silly cheap (and there is usually a reason for that).
Someone please address this question at the next market call on Bloomberg. Let's put Eric on the spot.
Agreed! Let the shareholder decide how to spend their returns!
Great article helps explain what I was wondering about.
Thanks