Dividends are taxable. You can opt not to participate in the stock buyback if you are in a high tax bracket that year. Also, if the stock buyback is at the same price or lower than your purchase, you pay no taxes. Pros know this and always would rather have a stock buyback rather than a taxable dividend.
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@IOEbLf5-3wbn LOL @ returning to shareholders. Offsetting dilution thru debt fueled buybacks isn't the same as a dividend. Of course if the dividend is debt fueled it's not that amazing either. Gotta juice dat non-GAAP EPS doe!
@-2xmk just who's money do you think this is? Qualcomm is a public shareholder owned company. If there is no other productive use for that cash, returning it to shareholders is proper.
Huh? So if other companies do it Qualcomm must do it as well? And $10 billion on buybacks???? What did 10B buy us? They should have waited before catching the falling knife; such a waste
yes, but every public company now spends all of their money on share buybacks. This is not a QCOM problem, its an America problem. the WSJ has numerous articles on the topic.
Yes. They will be given retention bonuses.
No one executive said anything about screwups like QMT or Pixtronix or FloTV ever. And best screwup is spending $10 billion in shares buybacks. Go figure
From a press release dated Aug 6, 2015
“Qualcomm Atheros has always viewed the home gateway as the enabler for consumers to not only access the Internet for browsing and downloading content and video streaming, but also as the hub of the Internet in the home for a variety of reliable and high quality services,” said Rahul Patel, senior vice president and general manager, connectivity, Qualcomm Technologies, Inc. “The combination of Qualcomm Atheros’ broad home gateway IP portfolio, including Wi-Fi, powerline, small cell, and Ethernet switch technologies, and Ikanos’ advanced wired modem technology, is designed to create a complete solution for a wide range of home gateway products to better serve the carrier segment.”
Sure, shareholders will be held accountable since it will end up coming out of their dividends.