[youeseh]

It seems to me that buybacks reward those who've held the stock so far but want to exit their position, and managers who want a bigger bonus short-term.

In contrast, dividends reward investors who want to remain invested, but I don't know what incentive management would have unless they too are shareholders.

[toast0]

If I receive a dividend and don't use it to buy more shares, now I'm less invested in that stock. And I've got to pay tax.

If the company buys other people's shares, now I own (very marginally) more of the company.

I agree with your management incentives, although RSUs and options contracts can adjust for dividends.