Buying back stock and paying dividends are *exactly* the same thing: giving back cash to shareholders.

Depending on countries tax laws, one is more financially attractive (if dividends are more or less taxed than capital gains etc).

The headlines would be the same : Company is making record profits and paying dividends (instead of increasing salaries, I assume?)

High dividends / Stock buy back may make financial analysts raise an eyebrow because the company is essentially saying :
"I have no worthwhile investment to spend this on, I'll give it back to shareholders"