S&P 500 Buyback Index vs. S&P 500 Total Return Index

S&P 500 Buyback Index vs. S&P 500 Total Return Index This chart clearly shows the large divergence between the S&P 500 Buyback Index and the S&P 500 Total Return Index. Picture source: Real Investment Advice

S&P 500 Buybacks Index

S&P 500 Buybacks Index The S&P 500 Buyback Index is down on a YoY basis. As a reminder, buybacks are the source of the rally in the stock market since 2009. Picture source: Crescat Capital LLC

Cumulative S&P 500 Buybacks 2009-2019

Cumulative S&P 500 Buybacks 2009-2019 Are buybacks driving the show? Thanks to tax cuts and low interest rates, corporate stock buybacks are booming. But what would happend if companies reinvested instead of buying their own shares? Picture source: Bianco Research

S&P 500 Use of Cash and Buybacks

S&P 500 Use of Cash and Buybacks This chart shows that buybacks account for the largest share of cash spending by companies in the S&P 500. Picture source: Goldman Sachs Global Investment Research

S&P 500 Annual Buybacks Since 2007

S&P 500 Annual Buybacks Since 2007 Thanks to tax cuts and low interest rates, U.S. corporate stock buybacks are booming since 2010. According to Goldman Sachs, the stock market should get around $1 trillion boost via buybacks this year. Picture source: Goldman Sachs Global Investment Research

S&P 500 Share Buybacks by Quarter

S&P 500 Share Buybacks by Quarter Share buybacks have contracted for the first time since 2017, as trade tensions and economic slowdown worry U.S. firms. Picture source: The Wall Street Journal

S&P 500 Payout Ratio

S&P 500 Payout Ratio Stock buybacks and dividends as a percentage of free cash flow are reaching dangerous levels. Picture source: MarketWatch