If they hand it out in dividends then you get taxed on them straight away. The way they are doing it is better because it increases the share price (by reducing the number of shares on issue) - and also provides good support for the share price during these turbulent times. Increasing the share price is way better than dividends because of the capital gains discount, and because it allows you to sell when you want and incur the tax then (e.g. in years where you might have a loss to offset, or a spouse not earning much etc).
Also, given they are profitable, this may only be the first $50 million share buyback - I suspect there will be more buybacks over the next 12-24 months.
ZIP Price at posting:
$2.03 Sentiment: Buy Disclosure: Held
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