The truth about record-high stock buybacks 💸
They're actually not that high
One of the more controversial decisions a corporation will make is to buy back shares of its own stock.1
So for some folks, it’s triggering to read headlines like these:
“Companies Plan to Pour Even More Cash Into Buybacks, Dividends in 2022” - WSJ, 12/22/2021
“U.S. Share Buybacks Hit Record While Capex Lags Pre-Crisis Level” - Bloomberg, 12/21/2021
“Stock buybacks can keep surging next year after a potential record for 2021, analysts say” - MarketWatch, 12/18/2021
According to data compiled by S&P Dow Jones Indices senior index analyst Howard Silverblatt, S&P 500 companies spent a record $234.6 billion on buybacks in Q3.
However, you if don’t click into these stories and read the analysis that puts these numbers into context, you’ll miss a critical part of the story.