Quote Originally Posted by LaserEyeKiwi View Post
dividends are taxed. If you wanted to increase your shareholding in FBU by using dividends, you would end up with less ownership of the company than you would by way of buyback. Likewise if you didn’t want your ownership stake in the company increased, you can instead sell the equivalent amount of shares in FBU that the buyback eliminates, that way you are effectively getting the same amount of cash you would have gotten from a dividend, but tax free (although with a small commission paid to your broker).
I understand all of that LEK, but thank you for your detailed explanations anyway.. You obviously trust FBU to make sane decisions with respect to the buy back. Thats the bit that irks me. I don't. If the shares were $5.00...well that might make sense. But around $8.. ?