S&P 500 Share Buybacks by Quarter

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

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

What if Companies Paid Dividends Instead of Buybacks?

What if Companies Paid Dividends Instead of Buybacks? The S&P 500 Total Return (dividends reinvested) would have been 10% lower if buybacks subbed with dividends. But, are stock buybacks a good thing for shareholders? Yes, if done at a price below the intrinsic value of the company. Buybacks are a good substitute for dividends, because…

Corporate Stock Buybacks Are Booming Since 2010!

Corporate Stock Buybacks Are Booming Since 2010! Thanks to tax cuts and low interest rates. What would happen if companies reinvested instead of buying their own shares? Unfortunately, artificially low interest rates are associated with unnecessary debt. See how corporate debt-to-GDP has increased since the Great Recession.