On Mon, 2008-09-01 at 08:46 -0700, Perelman, Michael wrote:
> 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.

What is interesting for shareholders is profit. 

Then allocating profits between reinvestment in the business,
acquisition, dividends and share buybacks is a political decision of the
company management and voted upon by shareholders.

As I said in my first post, we have more easily access to informations
on dividends rather than share buybacks (check finance sites, you'll
get dividends and profits, but not easily share buybacks information
even if it's formally public).

Laurent

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