The Winners and Losers in a $1 Trillion Buyback Year

Corporate America may be overpaying its own shareholders.


18 May, 2019FORTUNE.COM

The Winners and Losers in a $1 Trillion Buyback Year | BEAM

American businesses have been buying back their own stock at a wallet-scorching pace. In the five years up until 2018, encouraged by solid profits and changes in the tax code, S&P 500 companies repurchased about $2.9 trillion in stock. And last year, overall U.S. buybacks topped $1 trillion in a single year for the first time ever.

Buybacks theoretically help both shareholders--by giving them cash to spend or invest elsewhere--and the companies themselves--by taking shares off the market and reducing the cost of paying dividends. But with stock valuations near historic highs, some investors are asking: Are companies paying too much for their own shares?...

This article can only be viewed by registered members. Please log in to view it.

Be Part of this Story


More Stories


AboutContactEnglish