Dividend Rigidity( Stickiness) is a tendency of managers to keep the dividends unchanged and do not change the dividend policy . They like to maintain the same level of dividend and reduce it only in extreme situations .

No stock repurchases are flexible . Share repurchases are more prominent amongst the managers . In share repurchase , managers are not committed to repurchase unlike in case of dividend where once declared we cannot back out . Firms can delay or even suspend an ongoing open market repurchase program if the environment turns hostile