Share Repurchases Set To Rise?

With the potential tax increase on dividends, the potential for smaller dividend increases offset by increases in share repurchases exists. If capital gains are taxed at a lower rate than dividends, capital gains should be preferred by investors. Another interesting point in the article is the reference to the performance of stocks in companies that follow through with share repurchases. Such companies have outperformed the market as a whole, which may indicate that share repurchases, when completed, give a similar signal as dividend payments.