Dividends vs. Buybacks: It Doesn't Matter as Much as You Think

Companies returning cash should pick the more tax-efficient method. For shareholders, the total yield is what matters.

Buybacks are tax-deferred dividends with extra signaling complexity. In a taxable account, that deferral is real money.

What you actually want is a company that can deploy capital at high returns. When it can't, return the cash. The wrapper is secondary.