Cash to Shareholders

Cash to Shareholders Companies slashed payouts to shareholders in an attempt to stem the financial damage caused by the coronavirus pandemic. Image: J.P. Morgan

Shareholder Return vs. Free Cash Flow

Shareholder Return vs. Free Cash Flow Thanks to low interest rates, shareholder return has exceeded free cash flow levels again. U.S. companies cannot spend more than they earn indefinitely. Image: Goldman Sachs Global Investment Research

S&P 500 Annual Buybacks

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

U.S. Share Buyback Announcements

U.S. Share Buyback Announcements The strength of share buyback authorization announcements in the U.S. reflects companies’ confidence in their financial positions and their focus on delivering value to shareholders. Image: Goldman Sachs Global Investment Research

S&P 500 Weekly Announced Buybacks

S&P 500 Weekly Announced Buybacks U.S. share buyback announcements are robust during this earnings season, reflecting companies’ confidence in their financial positions and their dedication to delivering value to shareholders. Image: Deutsche Bank Asset Allocation

S&P 500 Buybacks as a Percentage of Market Capitalization

S&P 500 Buybacks Investors generally consider the persistent robustness of S&P 500 buybacks as a positive sign, as they have the potential to create sustainable value for shareholders. Image: Deutsche Bank Asset Allocation

Buybacks and S&P 500 Use of Cash

Buybacks and S&P 500 Use of Cash Stock buybacks are just one potential use of cash by S&P 500 companies. Companies may choose to engage in buybacks to return cash to shareholders, and potentially enhance shareholder value. Image: Goldman Sachs Global Investment Research

Buybacks – Share of S&P 1500 Companies Paying a Dividend or Repurchasing Stock

Buybacks – Share of S&P 1500 Companies Paying a Dividend or Repurchasing Stock Over the years, the share of S&P 1500 companies engaging in share repurchases has surged. In 1995, only 3% participated, while in 2023, it reached 70%, greatly enhancing shareholder returns. Image: Goldman Sachs Global Investment Research

Buybacks – Annualized Performance

Buybacks – Annualized Performance Buybacks at high valuations might destroy shareholder value. Image: BofA US Equity & Quant Strategy