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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 74.72-0.7%3:59 PM EST

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To: lawdog who wrote (35342)5/10/2000 5:30:00 PM
From: GVTucker  Read Replies (2) of 77400
 
lawdog, RE: Stock buy backs are smoke screens anyway. They rarely have any real economic substance

That is an ignorant statement.

Study after study shows that stock buybacks do indeed provide value to shareholders.

Cash dividends have a greater effect, true. But the only reason for this greater effect is that historically cash dividends are more dependable and more regular than share buybacks. The one great advantage of share buybacks, however, is that they are not taxed, unlike cash dividends. If a company can establish a regular, long term trend of buying back shares, as a company like GE has done, I would argue that this is better for shareholders than cash dividends.
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