Stock Buybacks vs. Dividends: Which is Most Tax-Efficient?
If you own a dividend-paying stock, you get to look forward to some extra money in your brokerage account every quarter. If you're the type to spend your dividend payouts, companies make it easy for you to receive your dividends in cash.
For example, some dividend-paying companies, like Exxon (NYSE: XOM), offer shareholders the convenient option of having their dividends deposited directly into a checking account -- or even mailed as a physical check. This saves shareholders the hassle of having to initiate electronic transfers out of their brokerage accounts every time a dividend is paid.
Source Fool.com
