[nocommentguy]

Share buybacks are equivalent to dividends. They are done when the company can’t think of how to hit their target ROI on that margin. Much better to pay back investors than invent “something useful” to spend money on a la government budget game theory.

[panarky]

Dividends are taxable when paid, while share buybacks aren't taxable as long as you don't sell.

[computerphage]

And even if you do sell, they're taxed as capital gains instead of income.