Re:U.S. airlines want a $50B bailout. They spent $45B buying...
by billylindeman on Tuesday April 07, 2020 @12:44PM
(#22804824)
4. Pay a dividend
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Re:U.S. airlines want a $50B bailout. They spent $45B buying...
by em500 on Tuesday April 07, 2020 @12:49PM
(#22804892)
For the line of thought in articles like these, there's no difference if airlines had spend $45B on dividend payouts in the past four years rather than on buybacks.
Re:U.S. airlines want a $50B bailout. They spent $45B buying...
by brockwhittaker on Tuesday April 07, 2020 @12:53PM
(#22804946)
No, because dividends don't benefit from compounding stock prices.
If you buy back your stock from 20 -> 80 a share vs. having paid out the same amount in dividends, the share buybacks yield a much greater income than dividends, which once paid no longer compound unless individual investors re-invest them.