as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
is it better for a public company to increase its dividends, or institute a share buyback?
user
in some sense, the share repurchasing program is better if the company does not foresee the same profit levels down the road.  paying a dividend for several years and then suddenly not paying or reducing a dividend is viewed as a "slap in the face" by investors.  executing a share repurchase program one year and then not the next is not viewed as negatively. from an investor's standpoint, i would say a dividend is preferred over a share repurchase program for a similar reason.  typically companies that pay a dividend have been doing so for quite some time and even increasing it over time as the company increases profits.  so, it can be assumed that if a company starts paying a dividend, it will do so for the long-run.
assistant