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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.