Comment by terminalshort
12 hours ago
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.
Qualified dividends (stock held more than 60 days) and long term capital gains are taxed at the same rate.
Good point, but that only applies to individual, not corporate shareholders.