[infecto]

Yes really. It is less about "propping" and more about returning capital back to investor and doing it in a way that does not trigger a tax event.

- Buybacks are more tax efficient

- Buybacks can be a signal that the company thinks its current market price is undervalued.

- Can increase control to existing shareholders.

[ramesh31]

Sure, but that's all hypothetical. There is no law stating "higher EPS = higher share price". Stocks can (and do) still go down after a buyback. Whereas dividends are laid out exactly ahead of time and can be predicted.

[infecto]

Whats hypothetical about it? Nothing I said was hypothetical. The company is doing some math to determine that the roic is below their coc or some similar measurement. So they could pay a dividend or buyback shares. Now it is true that the motivations for either could have many reasons. It is also true that after the buyback happens, prices could go back down...it is a market with changing information constantly. So yes a dividend is not a buyback but they are both ways to return capital to shareholders.

[neogodless]

The one thing it does not do with their cash on hand is "send it the common pool to fund current business operations."