Corporate America bought $736bn of its own stock last year, according to preliminary figures from S&P Dow Jones Indices. That is 15 per cent less than in 2018, when buyback mania reached a peak of $866bn. But factor in the record-shattering $485.5bn in dividend payments and 2019 is the second year in a row that companies returned more than $1tn to their shareholders.
At first glance, this might be cause for celebration. But buybacks only return money to investors indirectly, by boosting stock prices. Gains can be fleeting and often have a air of desperation. Look at Boeing. The crisis-hit stock is down nearly a quarter from its March 2019 peak. This despite the aerospace giant dishing out nearly $8bn in dividend and share buybacks over the first nine months of the year.
Yet despite the rise in buybacks, the average S&P 500 stock is expected to offer a dividend yield of just 1.8 per cent during the fourth quarter. That compares with 2.17 per cent in the prior year, and would be the lowest level for that quarter since 2010, according to S&P data. In other words, investors are paying expanded multiples for poorer quality earnings.
Дори и с включена в калкулациите солидната порция кеш се меря със сипчо. Доста учуден (приятно) дори и от портфейла на малкия който е част от моя - за толкова консервативна комбинация трябваше да се ровя из историята чак четвърт век назад през 1995г да намеря подобна възвращаемост от над 20%...
Както и да е, индексите/етфте ми са повече,
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