U.S. Buybacks – Quarterly Share Repurchases by S&P 500 Companies CEOs are worried about the economy and U.S. companies are spending less on stock buybacks, amid the trade war. Image: Financial Times
Buybacks and Dividends as Percentage of Market Capitalization Amid gloomy earnings, U.S. companies are increasingly using debt to fund buybacks and dividends. Image: Institute of International Finance
U.S. Non-Financial Corporate Debt and Net Share Repurchases (Buybacks) Thanks to low interest rates, U.S. companies are increasingly using debt to buy back shares. Image: BofA Merrill Lynch Global 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. Over the past decade, S&P 500 companies bought back $5 trillion shares, while cumulative flows from households and foreigners are only a drop in the bucket. But what would happend if companies reinvested instead…
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
Dividends and Buybacks vs. Free Cash Flow Dividends and buybacks have exceeded free cash flow levels again, thanks to low interest rates. But companies cannot spend more than they earn forever. Image: Capital Group
S&P 500 – Buybacks, Dividends and Capital Expenditures 2018 corporate tax cut boosted dividends and buybacks, but not capex. Image: Deutsche Bank Global Research
U.S. Repurchase Authorizations (Buybacks) U.S. repurchase authorizations are bigger than ever. Image: Goldman Sachs Global Investment Research
Buyback Contribution to EPS Growth Buybacks constitute a very important part of the earnings payout. Without them, there is no EPS growth. Image: Credit Suisse Research
S&P 500 Buyback Index vs. S&P 500 Total Return Index This chart clearly shows the large divergence between the S&P 500 Buyback Index and the S&P 500 Total Return Index. Image: Real Investment Advice
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. Image: Oxford Economics, Macrobond