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
Announced Share Repurchases (U.S. Buybacks) Announced share repurchases are still strong, which is good news for U.S. stocks. Image: J.P. Morgan
Announced Share Buybacks in the U.S. This chart puts into perspective the year-to-date running total of announced share buybacks in the U.S., Share buybacks surged to record highs this year, which is good news for U.S. stocks. Image: Fidelity Investments
Buybacks by Sector Stock buybacks are concentrated in the technology and financial sectors. Image: BofA Securities
S&P 500 – Buybacks and Shares Outstanding Stock buybacks are making a strong comeback this year as the economy recovers from the pandemic. Image: BCA Research
Cumulative Share Buybacks by Sector U.S. companies have spent $11 trillion on share repurchases since 2004, which has helped drive the U.S. stock market to record levels. Image: Fidelity Investments
Financials Corporate Client Buybacks and Percent of Sector Market Capitalization Financials buybacks are booming, which is good news for financial stocks. Image: BofA Securities
Buybacks Announced Stock buyback announcements continue to increase and that’s good news for stocks. Image: BCA Research
U.S. Buybacks Goldman Sachs expects buybacks to fall by 50% during 2020 compared with 2019 levels, suggesting slower EPS growth and less support for stock prices. Image: Goldman Sachs Global Investment Research
Implied Trailing 12-Month Buybacks Goldman Sachs expects a sharp decline in buybacks in 2020 and 2021, suggesting less support for stock prices and slower EPS growth. Image: Goldman Sachs Global Investment Research
Buybacks – S&P 500 Annual Share Repurchases Goldman Sachs expects stock buybacks among S&P 500 companies to drop 5% to $675 billion this year. Image: Goldman Sachs Global Investment Research