Be that as it may, but I don’t think as minority shareholders we have a say in this. I mean, we cannot tell a management to not give dividend and go for buybacks.
Dividends excluding the tax structure, is real return, not necessarily comparable to price appreciation, but it is a return that we get on our investment. And some people expect a dividend from their investments, and some even if don’t expect want one, when a company has cash and has no immediate need for the cash. And some people exclusively buy some dividend stocks, they may or may not be concerned about the price appreciation, and overtime such stocks can take care of a portion of expenses too. And I think, dividend paying managements are perceived to be friendly to shareholders. There are a lot of angles to this.
I get some dividends from my investments and shorter term trades, in fact, I even check regularly for the credited dividends. So take my view with a pinch of salt.
There are some topics opened on this subject in the forum, you can check them if you are interested, where different perceptions and opinions are expressed.
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