Corporate Clients’ 4-Week Average Buybacks vs. S&P 500 Total Quarterly Buybacks BofA’s corporate clients have been accelerating their stock buyback activity, surpassing the overall trend of S&P 500 buybacks. This defies recession fears and reflects confidence in companies’ future growth potential. Image: BofA Securities
Corporate Clients – Buybacks (4-Week Average) The strong buyback activity by BofA’s corporate clients, which exceeds historical averages, is expected to be viewed positively by investors, signaling confidence in the companies’ future growth prospects. Image: BofA Securities
S&P 500 Use of Cash and Buybacks Buybacks and dividends are expected to comprise 43% of cash use in 2024, while Capex and R&D will make up 46% of total cash spending. Image: Goldman Sachs Global Investment Research
U.S. Share Buybacks and Dividends Over the past 20 years, U.S. corporates have clearly favored buybacks over dividends, reflecting a shift towards prioritizing shareholder value through capital appreciation rather than regular income distributions. Image: BofA Global Research
S&P 500 Share Buybacks $7.6 trillion of S&P 500 share buybacks over the last 10 years. While buybacks can benefit shareholders, critics argue that funds could have been better spent on research, development, and employee wages. Image: Goldman Sachs Global Investment Research
Gross Share Buyback Announcements The strength of share buyback announcements reflect companies’ confidence in their financial stability and commitment to enhancing shareholder value. Image: J.P. Morgan
U.S. Share Buyback Announcements The strength of share buyback authorization announcements in the U.S. underscores companies’ belief in their financial stability and dedication to enhancing shareholder value. Image: Goldman Sachs Global Investment Research
S&P 500 Annual Buybacks Goldman Sachs predicts a substantial rise in S&P 500 share buybacks throughout 2024 and 2025, as financially robust companies continue to reward shareholders through buybacks. Image: Goldman Sachs Global Investment Research
Share Buybacks vs. S&P 500 Index The exit from the blackout period for stock buybacks by a significant number of companies could lead to a resurgence in buyback activity, potentially impacting stock performance and market dynamics. Image: Real Investment Advice
Buybacks – S&P 500 Companies in Blackout Period After the blackout period for stock buybacks ends, many U.S. companies may resume buyback activity, which has the potential to significantly influence stock performance and market dynamics. Image: Deutsche Bank Asset Allocation