Whats the disadvantage of the stock repurchases relative to the dividend payments?

Stock repurchase can help avoiding setting a high dividend level that cannot be maintained.

Firms may have to bid up stock price to complete repurchase, thus paying too much for its own stock.

Stockholders may take stock repurchase as a positive signal management thinks stock is undervaluated.

Investors can receive income from lower-taxed capital gains rather than the higher-taxed dividends.