Dividends and stock buybacks differ in another respect. Investors use changes in dividends as a signal of how well companies are doing. Companies sometimes hide problems by maintaining dividends even when they might not be doing that well.
Also, to the extent that stock represents ownership of a corporation, buybacks harm shareholders in ways that dividends do not because buybacks and do more to drain it well for the company off in excessive bonuses for management. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
