RE:Divy vs Sharebuyback...Another point is dividends are taxable so part of the money goes to the government . While a buyback may increase your partly taxable capital gain YOU control when you sell or realize except in the case of a takeover which presumably is at a premium to cover any tax. Because the industry is so capital intensive dividends may force you to raise capital at inopportune times ie when market and or prices are low. Should a dividend cut be necessary the stock will crater .