Nothing says "we're going to be around for years" like offering a dividend. If a company has the cash flow, why not share some with investors? Or if the company's stock is cheap, a buyback might be a better option.
Or in Questcor Pharmaceuticals' (Nasdaq: QCOR) case, do both. The company recently announced a new dividend and a doubling of the current stock repurchase program, from 3.2 million left on the last one to a total of 7 million shares.
Source: Motley Fool
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