Compared to raising regular cash dividends, initiating on-market share buy-backs are generally not as strong a positive signal to investors because the buy-back can easily be cancelled or scaled back before it is completed.

Question

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On-market share buy-backs can be more easily altered or cancelled compared to cash dividends, which are typically seen as a stronger commitment by a company to return value to shareholders.

Compared to Raising Regular Cash Dividends, Initiating On-Market Share Buy-Backs