Agree with you do not like buybacks if the share price is higher than my intrinsic share valuation. (Actually prefer it to be much lower...!)
Not sure of your thoughts when you say: "But it all comes down to the individual what will be better as buy backs mean you need to sell shares, causing a capital gains event. Whereas dividends count as income."
Generally buybacks happen when the company buys on theopen market, from willing sellers and there are no compelled sales.So as a shareholder who does not sell any shares into the buyback... there is no taxable event for you. Just a smaller share count with hopefully higher earnings and dividends per share and again hopefully a larger capital gain when eventually you do decide to sell.
Cheers.
Cuppa
NHC Price at posting:
$5.55 Sentiment: None Disclosure: Held
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