From a tax-paying shareholder's point of view,a stock repurchase

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From a tax-paying shareholder's point of view, a stock repurchase is more desirable than a cash dividend because it generally results in a lower tax liability since shareholders are taxed only when they sell their shares. In contrast, cash dividends are taxed in the year they are received, regardless of whether the investor wants to reinvest them or not. A stock repurchase is not equivalent to a stock split or avoided all taxation, and it only creates a tax liability if the investor participates in the repurchase.

From a Tax-Paying Shareholder's Point of View,a Stock Repurchase