Search Results for: stock buybacks

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. Picture source: 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 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. Picture source: Deutsche Bank Global Research

Buybacks – Cumulative Net Buying of U.S. Corporate Equity This chart shows that since 2009, buybacks have been the source of the rally in the U.S. stock market. Picture source: Oxford Economics, Macrobond

S&P 500 Buybacks Index The S&P 500 Buyback Index is down on a YoY basis. As a reminder, buybacks are the source of the rally in the stock market since 2009. Picture source: Crescat Capital LLC

Share Buybacks in China Chinese companies are buying back record amounts of stocks. Picture source: Goldman Sachs Global Investment Research

S&P 500 Annual Buybacks Since 2007 Thanks to tax cuts and low interest rates, U.S. corporate stock buybacks are booming since 2010. According to Goldman Sachs, the stock market should get around $1 trillion boost via buybacks this year. Picture source: Goldman Sachs Global Investment Research

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? 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…