Share of S&P 1500 Companies by Returning Cash to Shareholders Strategy Most S&P 1500 companies are returning cash to shareholders through both dividends and buybacks, which can significantly boost shareholder returns. Image: Goldman Sachs Global Investment Research
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 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
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
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 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