Every headline I see mentions Apple initiating a dividend. So, why don’t you see any headlines mentioning that they plan on returning as much if not more on buybacks than dividends over the next three years?
Investors generally don’t care how you return cash flows, just that you do and the total amount. With government proposals aimed at raising tax rates for cash dividends, it is more important that ever to have a holistic method to analyze cash distributions.
Source: McKinsey
