SPY - Watch Buybacks And Insiders For Buying Signals On This Dip
Although not everyone agrees with me, buybacks remain one of my favorite "dividend alternatives" for benefiting from the cash profits of the profitable businesses I invest in. In some ways, buybacks act as automatic dividend reinvestment plans, and are especially advantageous to taxable or foreign investors who would otherwise need to pay or have withheld a significant tax drag before reinvesting dividends. Although investors who live off their dividends may not find the increase in the percentage of the company they own as tangible as a cash dividend, a diversified portfolio even for income investors