It was not intended as a counterpoint. I just wanted to share the article. I searched the forum using the"dividends" keyword and found it hard to choose a perfect fit.
If I wanted to argue I would strart by mentioning IBM, their share buyback program and the price depreciation that followed at some point in the recent past.
But I’m not going to do that. Instead I’ll just state I’m agnostic in this debate. At first glance I have the impression we can’t derive definitive, absolute conclusions about the clash between buybacks and devidends.
In theory buybacks have the advantage of saving on tax expenses for the investor. Until when we don’t know. There are rumours some politicians want to impose taxes on that activity.
In practice I have the impression that share buybacks offer a better deal for the investor in some cases like Apple I think. But then there’s also IBM and I doubt IBM is the only one.
If we calculate an average, maybe buybacks have a superior performance. But that doesn’t allow to say it’s always better. I prefer to look at things case by case
I’m not suggesting you said this or that you said something else