InvestorQ : What is a better choice for small shareholders; dividends or buybacks?
sara Kunju made post

What is a better choice for small shareholders; dividends or buybacks?

Answer
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Abhi Yadav answered.
1 year ago


In the last few months we have seen some large companies like TCS, Wipro and HCL Tech announcing massive buyback programs. Most of these companies are sitting on billions of dollars in cash and need to return the money to shareholders if they do not have alternative investment opportunities. Remember, buyback is only one way of rewarding the shareholders. Another popular way of rewarding shareholders is through dividend payouts. In fact, the government normally requests its cash-rich PSU companies to pay out liberal dividends. Apart from higher regular dividends, these companies also declare special dividends and one-time dividends to distribute any windfall profits to their shareholders…