While dividend yields in the United States in the late 1990s were at historically low levels, share repurchases were at historical highs. Was this a coincidence?
There are several correlations as you suggested:
1. Cash that would have paid dividends was available for share repurchase programs.
2. Share repurchase programs are often used to support or increase the market price of the stock, and ...
The solution lists seven possible correlations between dividend yields and stock share repurchases. Any or all could have caused or contributed to the high stock prices of the late 1990s.