Originally Posted by
Mesabah
Executive compensation is, a lot of times, based on stock performance, so if you can manipulate the price, you don't have to actually perform for a company. I can't think of any situation where buy backs help investors in contrast to the dividend.
There’s really only two ways to reward investors. Dividends or buybacks. I believe Congress just passed legislation for a 1% tax on buybacks so hopefully that sways it towards dividends a bit. Personally I’ve been moving $ in retirement accounts to higher paying dividend companies and away from companies that do buybacks.