Microsoft Corp (MSFT)

[The Duke of URL]

"It is the same in the end, actually, whether you raise the price a dollar (over what it otherwise would be) or give the cash directly to the shareholder."

No, its not. A dividend is usally taxed at ordinary income rates, a redemption is usually a capital gain.

A dividend is involuntary, if you own the stock you get it. A redemption is voluntary. If you don't wish to sell your shares you don't.

A dividend is a tangible distribution of property which you can put in the bank.

A remdeption of others shares creates an intangible or more particularly, unrecognized increase in value.

Other than that your post is pretty much correct.