ELi5: Why do people dislike stock buybacks, but not stock dividends?

2.60K views

How are stock buybacks any worse than dividend payouts to investors?

I get how they are logistically different, but to me, whether you give the investors cash that they use to buy more stock, or you internally increase the value of a stock by buying it back with company funds, the result is the same – Investors get richer at the cost of investment.

Not saying buybacks aren’t bad, but I guess I just don’t understand the hate relative to dividend payments.

In: 98

67 Answers

Anonymous 0 Comments

Buyback are investigating in yout self. Dividends are investing in others. I see the difference.

You are viewing 1 out of 67 answers, click here to view all answers.