Anthony and Sarah both invested in the common shares of two very similar companies. In fact, the only difference was that Sarah's stock of Northern Petroleum paid a regular dividend while Anthony's stock of Southern Petroleum repurchased shares instead. On seeing her first (of many) dividend cheques, Sarah promptly declared to Anthony that the dividend meant her stock had superior returns. Based on the data below, show one year out whether Sarah is correct.

	Southern Petroleum	Northern Petroleum
Growth rate	6%	6%
Cost of equity	10%	10%
Earnings	$20,000,000	$20,000,000
Shares outstanding	25,000,000	25,000,000
Dividend payout ratio	0%	50%
Stock repurchase	50% of earnings	0%