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Why do companies pay a dividend when they can buy back and retire shares to increase their share price?

Paying a dividend vs buying back shares is, from a pure financial theory perspective, the same thing from a corporation's perspective. In either case, the Corporation has cash, pays that cash out, and ...
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Why do companies pay a dividend when they can buy back and retire shares to increase their share price?

A dividend is company money paid to share holders which inflates the value of a stock for a short (a few months.) period of time. No. Dividends do not usually inflate the value of the stock. In fact, ...
littleadv's user avatar
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