[Evan]

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wtf

the point is that many companies are doing share repurchases rather than paying dividends now

and share repurchases are basically equivalent

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Share repurchases are more tax efficient for most investors, that's why they're more common now.

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But if you own a company where they use a dollar to buy back a share that is worth less than a dollar then you'd probably rather have the dividend.

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Are you saying they're buying back overvalued stock or they're somehow getting ripped off on the specific price they pay for it? If it's overvalued, wouldn't you just sell it? If it's overvalued and you know they're doing the buyback just wait until they do so and the stock price goes up, then sell it.

Maybe I'm misunderstanding your point.

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I'm saying lots of times the companies will buy back overvalued stock, and in a lot of cases the buybacks just serve to keep the share count constant when you consider the amount of options being granted. Buybacks make sense only if the stock is clearly undervalued, seems like a lot of managements spend a lot of money on buybacks without being clear on that point.

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I'm still not following. If the same amount of money goes back to shareholders don't you just want to do it in the most tax efficient way?