There is a hidden way that companies can reward shareholders, and no, it’s not dividends. This method actually works much better. Dividends create a double-taxation event, where a company pays taxes on the operating cash flow earned during a certain period and then pays dividends with this after-tax capital, only for investors to pay a second round of tax on this income later on.
[content-module:CompanyOverview|NYSE:IBTA]More than being a double-taxation event, dividends naturally strip a certain amount of cash out of business, capital that might have been used in other more productive and accretive ventures.
