Re:CEO pay and stock buybacks have soared at the largest low...
by beambot on Thursday August 21, 2025 @07:36PM
(#44979487)
Forced liquidity and the tax implications can absolutely be bad for investors.
If my option is a 5% dividend or a 5% share buy-back, the net-of-taxes benefit of the 5% dividend is 15%-20% less due to capital gains taxes than the share buy-back. The effect with annual compounding over many years is quite material...
If my option is a 5% dividend or a 5% share buy-back, the net-of-taxes benefit of the 5% dividend is 15%-20% less due to capital gains taxes than the share buy-back. The effect with annual compounding over many years is quite material...