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.
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.