Comments on: Stock Buybacks: Who Benefits The Most? http://dividendmoney.com/stock-buybacks-who-benefits-the-most/ Helping You Make More Money And Grow Your Wealth Mon, 22 Feb 2010 13:23:19 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Bruce http://dividendmoney.com/stock-buybacks-who-benefits-the-most/comment-page-1/#comment-67555 Bruce Wed, 10 Feb 2010 01:19:00 +0000 http://dividendmoney.com/stock-buybacks-who-benefits-the-most/#comment-67555 Don't forget that dividends are a taxable event for many investors. By buying back shares, the increase in share price becomes a capital gain (taxable at a lower rate if shares are held long enough) and the investor doesn't have to pay it until they sell the shares. Compared to a dividend, this is an advantage to the investor, because the dividend is always taxed as ordinary income in the year it was distributed. Don’t forget that dividends are a taxable event for many investors. By buying back shares, the increase in share price becomes a capital gain (taxable at a lower rate if shares are held long enough) and the investor doesn’t have to pay it until they sell the shares.

Compared to a dividend, this is an advantage to the investor, because the dividend is always taxed as ordinary income in the year it was distributed.

]]> By: Bill Berggren http://dividendmoney.com/stock-buybacks-who-benefits-the-most/comment-page-1/#comment-61160 Bill Berggren Sun, 18 Oct 2009 18:53:16 +0000 http://dividendmoney.com/stock-buybacks-who-benefits-the-most/#comment-61160 Be very careful of a stock massively buying back stock with a high short ratio. Many times executives are trying to unload their stock with insider deals. Circuit City bought back tons (over 10% annually) of stock prior to its bankruptcy. Movie Galley bought back stock, virtually all stocks ready to go bust seem to do massive buybacks. Be very careful of a stock massively buying back stock with a high short ratio. Many times executives are trying to unload their stock with insider deals. Circuit City bought back tons (over 10% annually) of stock prior to its bankruptcy. Movie Galley bought back stock, virtually all stocks ready to go bust seem to do massive buybacks.

]]> By: tw http://dividendmoney.com/stock-buybacks-who-benefits-the-most/comment-page-1/#comment-38133 tw Tue, 23 Sep 2008 14:34:45 +0000 http://dividendmoney.com/stock-buybacks-who-benefits-the-most/#comment-38133 Ever thought of leaving this once great country? Canada and Mexico are taking applications. A country with all democrats how will that benefit us? Maybe more group hugs..... oh and they would be free.... Ever thought of leaving this once great country? Canada and Mexico are taking applications.

A country with all democrats how will that benefit us? Maybe more group hugs….. oh and they would be free….

]]> By: Show Me Don’t Tell Me - A Rebuttal - SiriusBuzz http://dividendmoney.com/stock-buybacks-who-benefits-the-most/comment-page-1/#comment-31707 Show Me Don’t Tell Me - A Rebuttal - SiriusBuzz Sun, 03 Aug 2008 13:45:57 +0000 http://dividendmoney.com/stock-buybacks-who-benefits-the-most/#comment-31707 [...] Overall growth is important, yet not as important as growth per share. As shares are removed from the market, per share earnings grow, whether or not revenue does. Each outstanding share becomes more valuable because EPS is increased right away. Think of this as another way of offsetting slow auto sales and retail growth. [...] [...] Overall growth is important, yet not as important as growth per share. As shares are removed from the market, per share earnings grow, whether or not revenue does. Each outstanding share becomes more valuable because EPS is increased right away. Think of this as another way of offsetting slow auto sales and retail growth. [...]

]]> By: Ryan C http://dividendmoney.com/stock-buybacks-who-benefits-the-most/comment-page-1/#comment-27684 Ryan C Mon, 30 Jun 2008 19:02:20 +0000 http://dividendmoney.com/stock-buybacks-who-benefits-the-most/#comment-27684 American Veteran: So what you're saying is.... I should buy Exxon-Mobil? American Veteran:
So what you’re saying is…. I should buy Exxon-Mobil?

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