Question: Why do some companies issue dividends to shareholders to compensate them for investing in the business and other companies do share buybacks? What's the difference

Why do some companies issue dividends to shareholders to compensate them for investing in the business and other companies do share buybacks? What's the difference and why would a company choose either way, or both?

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Companies have several options for returning value to their shareholders including issuing dividends and conducting share buybacks also known as stock repurchases The choice between these two methods ... View full answer

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