Stock Buybacks Since 2000

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

U.S. Corporate Stock Buybacks Are Booming Since 2010!

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

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

Share Buybacks vs. S&P 500

Share Buybacks vs. S&P 500 Stock buybacks significantly correlate with S&P 500 performance, as companies that buyback shares tend to improve their financial metrics and boost investor confidence, often resulting in higher stock prices. Image: Real Investment Advice

Corporate Clients’ 4-Week Average Buybacks vs. S&P 500 Total Quarterly Buybacks

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

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

Corporate Client Buybacks as a % of S&P 500 Market Capitalization

Corporate Client Buybacks as a % of S&P 500 Market Capitalization BofA’s corporate clients are currently engaging in significant stock buyback activities, marking an all-time high. This trend is generally perceived as a positive indicator for the broader market. Image: BofA Securities

S&P 500 Sectors Announced Buybacks (Last 3 Months)

S&P 500 Sectors Announced Buybacks (Last 3 Months) In the U.S. stock market, announced buybacks have been significantly driven by the Information Technology and Financial sectors over the last three months. Image: Deutsche Bank Asset Allocation