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Regular cash dividend with a periodic share repurchase

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Compare a regular cash dividend with a periodic share repurchase. Which has greater appeal to you? Explain.
Explain a stock dividend and further explain if you would prefer it to a cash dividend.
What are stock splits and how desirable are they?

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This solution compares a regular cash dividend with a periodic share repurchase.

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A regular cash dividend is dividend paid by the company to is shareholder's at a specified times in a year. These payments can be quarterly, half yearly or yearly. Company pay regular cash dividend when it earns profit. The amount of regular cash dividend paid out to the shareholder's is declared by the board of directors. It is taxable.
Whereas the periodic share purchase is a plan that gives the shareholders an option to sell back there shares to the company at a price more than the market price of the share. There is a tax advantage for ...

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  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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