Just got home and by reading the days post it looks like the old question of dividends vs share buyback has been a major topic today.
In the January 23rd edition of Business Weeks there was a lengthy article comparing share buybacks to the issuance of dividends. If you can get a hold of that article it is an eyeopener and would answer many of the questions presented on the board. The bottom line is that in almost every situation the issuance of dividends is always the best business decision for the average shareholder. Share buybacks rarely give the same value as dividends and do not affect share price as much as one would think.
Sorry I cannot present the entire article but if you can get a hold of the issue the article is on pages 74 & 75.
