| ▲ | fancyfredbot 6 hours ago | |
In theory a dividend is also price neutral. You have the dividend now but the company you owned doesn't any more. However, if someone gives you a dividend you typically have to pay tax, and lots of people really hate paying tax. So buybacks are the preferred price neutral way of dealing with excess cash. | ||
| ▲ | paulddraper 5 hours ago | parent [-] | |
The dividend amount plus share price is neutral. But before-paying-dividend versus after-paying-dividend decreases the value of a share. | ||