New answers tagged dividends
2
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Accepted
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 ...
7
votes
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, ...
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