Share Buybacks Are Down

Interesting facts via James Saft:

U.S. company stock buybacks are down 21 percent in the first seven months of 2016 compared to the same period a year earlier, according to TrimTabs Investment Research, a fall driven in part by five consecutive quarters of year-over-year earnings declines among S&P 500 stocks.

(…)

Over the first six months of the year S&P 500 companies paid out 112 percent of their earnings in the form of either dividends or share buybacks.

(…)

Companies have issued debt in such size that net debt compared to a standard measure of earnings is now at an all-time high for non-financial companies in the S&P 500, according to data from FactSet, having almost doubled in about five years.

Posted by on August 31st, 2016 at 10:27 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.