Kiplinger

Stock Buybacks Surge

The topic of stock buybacks is on the minds of politicians and investors alike, and it's no wonder: 2018 was a banner year for companies buying shares of their own stock. Flush with cash, thanks to friendlier corporate tax policies, companies in Standard & Poor's 500-stock index repurchased $806 billion of stock last year, up 55% from the previous year and 37% from the record set in 2007. The spending continues: Investment firm Goldman Sachs expects S&P 500 firms to spend $940 billion on buybacks in 2019.

With companies having already spent $4.7 trillion over the past decade on their own stock, politicians are beginning to wonder if that money would be better spent elsewhere. Earlier this year, Senators Chuck Schumer and Bernie Sanders announced plans to

You're reading a preview, sign up to read more.

More from Kiplinger

Kiplinger3 min read
What To Do If You Bump Heads With A Bully Of A Lawyer
We hear a lot about bullying: at school, and cyber-bullying over the internet. But bullying -- any use of force, coercion or threat that is intended to intimidate -- isn't just confined to the playground. The adult world has its share of bullies, to
Kiplinger4 min read
How a Special Needs Trust for Your Child Can Fall Apart
Parents of disabled children must juggle a lot of responsibilities: work, bills and of course caregiving. But one ball they can't afford to drop is special needs planning. One wrong move in this complicated ballet balancing benefits and services with
Kiplinger4 min read
Understanding Interest Rates - and Why You Need to Care
It's easy to lose sight of how interest rates impact our household finances amid a decade of tumultuous rate fluctuations. It may be tempting to write off rate increases and decreases as something you cannot nor should not react to, since it ultimat