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Stock Buyback Boom of

Reading Now Stock Buyback Boom of Events Training Videos Free Reports Premium Research About Editors Contact Us Subscriber Login. Stock Buyback Boom of Ian Wyatt December 31, at Income investors often prefer dividend checks to stock buybacks. And the reason is simply that it feels good to get a dividend check every quarter.

But inmany companies embraced stock buyback programs as another important way to return capital to shareholders.

Stock buybacks are also known as share repurchase programs. When this happens, the number of shares declines and the earnings per share rises. Data for share buybacks is available through September.

Stock Buybacks

When it comes to stock buybacks, the most important thing is valuation. Back inmany companies squandered cash by completing share buybacks at very expensive valuations. Yet in recent years, stocks have been inexpensive on a price-to-earnings basis.

As a result, investors have embraced stock buybacks. Companies that complete stock buybacks have been top performers. The PowerShares Buyback Achievers NYSE: That outperformance has been consistent over the last five years. In the last quarter, the biggest stock buybacks have been from well-known companies including Apple NASDAQ: AAPLPfizer NYSE: PFEand Exxon Mobil Stock markets in the caribbean Earlier this month, three companies announced big share buyback programs.

Those include MasterCard NYSE: The strong performance of stocks that are completing share buybacks is compelling. The good news is that most companies that are doing a share repurchase program also pay a dividend.

That dividend may be pretty average. But when you consider the potential for superior share performance and dividend payments, the combination is very attractive. Remember — Apple shares trade at just nine-times earnings.

As you look toward rebalancing your portfolio stocks with largest buybacks the year ahead, you should consider adding shares of companies that are buying back their stock.

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Stock Buybacks: 3 Companies Repurchasing Shares in -- The Motley Fool

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