Stock Buybacks vs. S&P 500 Stock buybacks strongly correlate with S&P 500 performance by improving financial metrics, boosting confidence, and driving stock prices higher. In 2025, companies are expected to hit $1 trillion in share repurchases. Image: Real Investment Advice
Stock Buybacks by Companies in the S&P 500 Index Bye-bye buybacks! S&P 500 buybacks fell to $88.7 billion in the second quarter, the lowest level since 2012. Image: CNBC
Stock Buybacks Since 2000 Thanks to tax cuts and low interest rates, the stock market should get around $1 trillion boost via buybacks this year. Image: Goldman Sachs Global Investment Research
Stock Buybacks Topped Capital Expenditures for the First Time since 2008 Thanks to corporate tax cuts, stock buybacks hit an all-time high and topped capital expenditures for the first time since 2008. As a reminder, 2008 was the start of the global financial crisis.
U.S. 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.
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 Are the Source of the Rally in the Stock Market since 2009 But as trade tensions and economic slowdown worry U.S. firms, stock buybacks declined last quarter. Image: Deutsche Bank Global Research
S&P 500 Sectors Announced Buybacks (Last 3 Months) In the U.S. market over the past three months, stock buyback announcements have been led primarily by companies in the Financial, Healthcare, and Communication Services sectors Image: Deutsche Bank Asset Allocation
S&P 500 Buybacks The projected increase in stock buybacks to over $1 trillion in 2025 reflects strong confidence among S&P 500 companies in their financial health and future earnings potential. Image: Deutsche Bank Asset Allocation
Corporate Clients’ 4-Week Average Buybacks vs. S&P 500 Total Quarterly Buybacks BofA’s corporate clients are significantly increasing stock buybacks, defying recession fears and indicating a positive market outlook, suggesting these companies expect ongoing growth and stability in the future. Image: BofA Securities
Buybacks – S&P 500 Companies in Blackout Period Once the blackout period for stock buybacks ends, many U.S. companies are likely to resume buyback activities, which could substantially influence both stock performance and market dynamics. Image: Deutsche Bank Asset Allocation