[ac29]

> Instead of issuing a dividend, they repurchase 1 share for $1. Assuming the value of the company hasn't changed, the per-share price should now be $1.01. Basically, they gave you an untaxed $0.01 increase in equity value, which you can choose to recognize on your own schedule.

Small nitpick here - buybacks are taxed as of this year in the US. There is a 1% excise tax paid on stock buybacks (paid by the company, not the stockholder).