Both tells the investors that the company is healthy financially, a buy back will sure increase the pps as it reduces the float and the cash position, but any healthy company will issue dividends to its shareholders, the dividends are passing some of the profits to the shareholders, imo I personally prefer dividends as some investors will buy the company just for the dividends, it is like having a cd in the bank and you are getting your annual interest, can you imagine Edig pocketting $50 million and declaring dividends say two cents a share and if you buy now say at sixteen cents a share it will be like getting 13% return on your money.

Even if edig is at a dollar a two cents dividends will be 2% return on your money which is better than getting 1% or less from the bank. dividends will reduce only the cash position but keeps the float intact. In the above scenario a thirteen percent ROI will surely increase the PPs.

FWIW JMHO