Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Tim Cook's buyback program will be a boon to shareholder for decades to come! Good things cooking at Apple!
Print the post Back To Top
No. of Recommendations: 4
I don't think it is much of a boon; I would much rather have a nice big one-time dividend.

JimA
Print the post Back To Top
No. of Recommendations: 0
Yep, an extra dividend rather then a buy back gives you more options including buying more stock if that is what you want. On the other side hou will pay taxes,on the dividend unlessmit is in an IRA. - Ned
Print the post Back To Top
No. of Recommendations: 4
I don't think it is much of a boon; I would much rather have a nice big one-time dividend.

At caramba! If you want to convert some of your winnings to cash sell some stock! It has exactly the same effect as the company issuing a dividend except those of us who don't want to pay tax on a distribution we don't want don't have to. But you are in good company with this idea. Many people never manage to understand this.

R:(
Print the post Back To Top
No. of Recommendations: 1
Ralph,

Right on! Buybacks are almost always better than dividends...especially
when you factor in the tax effect.
If Warren Buffett liked dividends (and the tax effect), BRK wouldn't have been
without a dividend for the last 40 years.

t h
Print the post Back To Top
No. of Recommendations: 2
If Warren Buffett liked dividends (and the tax effect), BRK wouldn't have been
without a dividend for the last 40 years.


Warren Buffett doesn’t like dividends because he likes accumulating assets, and distributing money each quarter (or whatever) does the opposite. Most companies are narrowly focused, so “excess” cash doesn’t have a useful purpose. Buffett will buy anything from shoes to airplanes, from ketchup to newspapers, so he always has a place to put new money. If he’s shipping money out, there’s less “new money” to play with.

I have the greatest respected for him, but you give him a nobler purpose than reality. He’s a collector. Youj’ve seen the lady with 8,000 Hummel figurines in her garage? That’s Buffett, except for him it’s dollar bills.

Many people never manage to undeerstand this

There is no guarantee that a stock buyback will raise the stock price and put more money in your pocket. Indeed, recent research shows that the companies which have done the largest buybacks have also underperformed the market. With a dividend, at least, I get paid for my ownership in the corporation. And there are strategies (the 401k is only the most obvious and well known) where the dividend is not reduced by taxation - not right away, anyway.
Print the post Back To Top