Comment by terminalshort

Comment by terminalshort 8 hours ago

2 replies

Yes. This is correct. Share buybacks are financially equivalent to a dividend from the company's perspective, and slightly better from the shareholder's perspective because they can choose when to take the dividend and pay capital gains tax instead of income tax on it.

triceratops 7 hours ago

Qualified dividends (stock held more than 60 days) and long term capital gains are taxed at the same rate.

  • terminalshort 4 hours ago

    Good point, but that only applies to individual, not corporate shareholders.