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At one time capital gains were taxed at a lower rate than dividends. Stock buy backs would reduce the number of shares making the remaining shares worth more in theory. Thus a person could sell his shares back to the company for more money than if the company had paid a dividend. Today, that is no longer the case. Dividends are taxed at about the same level as capital gains. A stock buy back gives absolutely no advantage to a stockholder. It takes money that could be used for dividends and uses it for something else. When someone claims that the accounting rules of 15 years ago still apply, you should double check.

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Q: Why Stock buybacks are similar to dividends from the company?
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What are company dividends?

Company dividends are royalties payed to stock holders of a particular business. The amount of the dividend varies, depending on the company and the amount of stock owned.


How shareholders earn money?

Shareholders earn money through: Dividends: a portion of the company's profits paid to shareholders. Capital appreciation: an increase in the value of a company's stock, which can result in profits for shareholders when they sell their stock. Stock buybacks: when a company buys back its own shares, reducing the number of outstanding shares and increasing the value of remaining shares. 💵💯👉 𝐡𝐭𝐭𝐩𝐬://𝐰𝐰𝐰.𝐝𝐢𝐠𝐢𝐬𝐭𝐨𝐫𝐞𝟐𝟒.𝐜𝐨𝐦/𝐫𝐞𝐝𝐢𝐫/𝟑𝟗𝟕𝟕𝟕𝟔/𝐁𝐡𝐮𝐯𝐚𝐧𝟑𝟔𝟗/


Are dividends a right or a privilege?

Stock dividends are a right if the company is in profit and the shareholders approve the dividend payment.


What are the dividend payment methods?

There are several dividend payment methods, including cash dividends, stock dividends, and property dividends. Cash dividends involve distributing a portion of a company's earnings in the form of cash payments to shareholders. Stock dividends involve issuing additional shares of stock to shareholders instead of cash, increasing their ownership in the company. Property dividends involve distributing assets or property to shareholders as dividends.


How I can know which company stock shares to buy for best dividends investment?

By studying the stock exchange market and subscribing to the financial news will help you know the best company to buy shares so that you get the best dividends.


What is an outflow of cash profitable operations the sale of equipment the sale of the company's common stock or the payment of cash dividends?

the payment of cash dividends


When do you usually pay dividends?

Most companies pay out dividends quarterly. In order to earn a dividend, you must own stock in a company on one date, and they pay dividends on another date.


Why do comapanies have to pay income to stockholders as dividends?

As incentive for people to buy stock in that particular company


Which dividends do not reduce stockholders' equity?

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The company is owned by the depositors who are paid dividends after all operating costs and fees are paid. Depositors own stock in the company.


Are dividends paid on treasury stock?

cash dividends are not paid on treasury stock, but what about stock dividends? I would think stock dividends would apply to treasury shares, but would like to know for sure. Also, I assume stock splits apply to treasury shares and would like this verified.


Is Preferred stock means the company is preferred over other companies in a particular industry?

No. Prefered stock is just stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends. This means a person that bought prefered stock always gets the same divided, even when the company is losing money and cannot continue to give dividends on other classes of their stock.