The Best Way To Pay Cash To Investors: Dividends Versus Buybacks Versus Reinvestment

Profits are the reward for any successful business and they are what investors seek at the end of the day, but management must be diligent in how the cash from these profits is returned to investors. Once a company has earned a significant return on the bottom line, there are three approaches that can be taken to repay investors, each coming with unique benefits and consequences. Dividends are the most common tool and they have been an investor favourite for quite a while, which may be the...