tough one and it depends on everyone’s tax situation. Not...

tough one and it depends on everyone’s tax situation. Not everyone benefits from a share buy back as if it pushed the price up but it means you have to sell shares and face a capital gain tax should you need cash. But it might work for some if they have losses. A dividend on the other hand will put an underlying yield on holding the stock and if big enough would entice investors from leaving their money in the bank, thus pushing up the share price. It gives you cash to live on and pushes up your stock value. If fully franked even better. I prefer dividends. Only benefit of a buy back over dividends is that it is defensive should a takeover be on the cards.