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.
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Stock buybacks often deplete cash reserves, and if the stock then goes down the company is in even worse shape than before. And if the stock goes up, there’s a reluctance to sell to generate cash, so again, operating cash is too low. But for a while it was seen as “what all the smart finance people are doing” so a lot of companies that should not have done it, did it.
Because it’s a buzzword. People also don’t understand the step-up method for stocks when people inherit. They just get irrationally mad that rich people exist.
Buyback are investigating in yout self. Dividends are investing in others. I see the difference.
Buyback are investigating in yout self. Dividends are investing in others. I see the difference.
People hate both but baybacka have been in the media recently. It’s hard not to hate it when a company get bailed with public money, then fires a bunch of people or cuts wages due to the economy, then posts record profits and spends it on stock buyback.
Buyback are investigating in yout self. Dividends are investing in others. I see the difference.
People hate both but baybacka have been in the media recently. It’s hard not to hate it when a company get bailed with public money, then fires a bunch of people or cuts wages due to the economy, then posts record profits and spends it on stock buyback.
Dividends are getting rent.
Stock buyback is your neighbor selling their house, and hopefully the value of your house goes up.
People hate both but baybacka have been in the media recently. It’s hard not to hate it when a company get bailed with public money, then fires a bunch of people or cuts wages due to the economy, then posts record profits and spends it on stock buyback.
Dividends are getting rent.
Stock buyback is your neighbor selling their house, and hopefully the value of your house goes up.
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