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Apple announced a $60-billion (U.S.) share buyback plan in April, 2013, the share price has rallied 32 per cent.
Apple announced a $60-billion (U.S.) share buyback plan in April, 2013, the share price has rallied 32 per cent.
(JASON LEE/REUTERS)

Dividends? Share buybacks work better in a bull market

Share buybacks don’t tend to excite investors the way dividends do, but buybacks deserve a second look: During the current bull market, buybacks have done a better job of driving share prices higher.

This isn’t news to high-profile investors such as David Einhorn or Carl Icahn. Last year, they hounded Apple Inc. to spend some of its massive cash hoard on its own shares, arguing that the move would “unlock value” in the stock, driving the price higher.