They're not the same thing financially: with dividends, it is much easier for shareholders to invest the money in some other company that is better managed. Stock buybacks give the illusion of profit growth, when in fact the profits per share are engineered by company executives. The biggest winners in this arrangement are without question the executives, who practically guarantee share growth and, therefore, large bonuses.

It is not an illusion. Companies state the buyback amounts and outstanding shares. The market for the most part is quite savvy and knows how to price in these mechanical changes. Nobody is being fooled at scale.

Oh brother. There's no illusion. I guess the average guy off the street doesn't get it, but no one in the finance world is fooled into believing a share buyback increased profit. Not a single one. It decreases share count in exchange for cash. Pure balance sheet transaction.