Tag Archives: buybacks
A New Generation of Buyback Indices: Introducing the S&P 500 Buyback Aristocrats Index
The latest addition to the S&P Aristocrats Index Series, the S&P 500® Buyback Aristocrats Index represents a new generation of buyback indices. This index tracks companies that have consistently reduced their common shares outstanding for at least 10 consecutive years—a rare achievement that signals disciplined capital management, financial strength and a steadfast commitment to shareholder…
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Combining Dividend Aristocrats and Buybacks
Dividends and stock buybacks are two ways that a company returns capital to its shareholders. Investors can benefit from both, but is there a synergy that can result from combining them? We’ve seen a surge in both buyback value and the number of participating companies in recent years. In 2018, 444 of S&P 500® companies…
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Dividends and Buybacks: S&P 500® Buyback Index Outperforms
In general, it is a positive sign when a company buy back shares. This means the company believes its stock is undervalued and is confident about its future earnings. In recent years, buybacks have become increasingly popular. With a record number of companies buying back shares, how are these companies are faring? A company can…
Buybacks and the S&P 500® EPS
Buybacks do not increase S&P 500 Index earnings-per-share (EPS), the Dow is a different story. On an issue level, share count reduction (SCR) increases EPS, therefore reducing the P/E and making stocks appear more ‘attractive’. SCR is typically accomplished via buybacks, with the vital statistic being not just how many shares you buy, but how…
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