Dividends vs. Share Buybacks

[@InvestingwithTom]

Let me know which of the two you prefer companies to do down below. Have a great day!

[@Jameslauu]

golden oldie! fuzzy bear tom!

[@wildman529]

Dividends!

[@InvestingwithTom]

Wild Man that cash flow 💵

[@financialthesis8971]

Super interesting video Tom!! I like dividends as I like the cash flow from my portfolio as you said it's one of the main advantages for dividends. But enjoyed hearing your preference on share buy backs. Maybe my interest will change as I increase the value of my portfolio and tax becomes more significant. Anyway great video! Where are you based in NZ??

[@InvestingwithTom]

Thanks mate, appreciate the feedback! Also, just subscribed to you. Good to see some kiwi money channels :) I'm based in Hamilton

[@aarontwigg1042]

There is a third option with dividends other than cash or cheque. I enrol in the Reinvestment program with some companies that I am invested in. My dividend is more shares.

[@InvestingwithTom]

Aaron Twigg ah of course! That one slipped my mind. I use this option with one of my ETF investments. Thanks!

[@MrTanzfisch]

Would you explain franking further in an other video?

[@InvestingwithTom]

Martin Loga sure, I’ll add it to the list 🙂

[@nech060404]

Sorry to point this out but your math is wrong. The market cap would decrease by what the company spent to buy the shares. Because both the shares outstanding and the market cap decreased proportionately the share price doesn't change.

[@Duke_of_Prunes]

Now I am confused. So you're saying that the trading price is NOT raised automatically? Or it is automatically raised? Chevron announced a stock buyback today (6/30/21) and I am now very interested to find out what to expect for my 148 shares.