A shareholder deploying dividend proceeds to buy additional shares in the same company is equivalent to a shareholder not tendering for buyback, while dividend encashed for other pursuits is equivalent to a shareholder tendering his / her shares.
Inverting, if buybacks / dividends have no difference in the hand of the shareholder, why would they be different to a company? Only due to the quantum?
Shortchanging small, uninformed shareholders at the time of worst crises in a century !!
A shareholder deploying dividend proceeds to buy additional shares in the same company is equivalent to a shareholder not tendering for buyback, while dividend encashed for other pursuits is equivalent to a shareholder tendering his / her shares.
Inverting, if buybacks / dividends have no difference in the hand of the shareholder, why would they be different to a company? Only due to the quantum?
"Value destruction by buying back overvalued stock..." An investor can simply tender in the buyback to avoid this issue, no?