DIVIDENDS vs SHARE BUYBACKS: Investing For Beginners


Which is better dividends, share buybacks or retained earnings?

The main objective of any company is to be profitable. Now the question is what to do with this money? After investing in the company itself for it to remain in operation, the rest of the money can be used for three things: pay dividends to shareholders, buyback shares or reinvest the money in the growth of the company.

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