As an advantage for redemptions, one could explain the tax advantage in more detail. Since dividends are taxed directly, the capital mass of the investors is reduced and one has no possibility to decide when one wants to realize profits. With buybacks, the money remains in the capital market and profits remain unrealized, so the capital can increase unchecked. In addition to the lack of ideas that lead to such measures, a distinction must be made as to whether it is a growth industry or whether the money is actually no longer needed. Many industrial companies have reached their growth limit and have hardly any possibilities to expand sensibly. In this case, such measures can be more sensible than growing into areas that do not fall within the company's horseradish competencies.
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@EnjoyCapitalism despite all the reading I still do not understand the tax benefits 😂 I just pay taxes later 🤷🏼♂️ what should be so much better now? Yes! should be distinguished in any case 👍
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@DiFigiANo I have written an article on this topic with a calculation example. Can also be applied to dividends. Is pinned on my profile.
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