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Dividend payouts from S&P companies rise to record high while share buybacks decline. What investors need to know now.
American companies paid out a record amount of dividends last year, while stock buybacks fell sharply. According to CNBC, dividend payouts rose 4.2 percent year-on-year to a total of $588 billion. In contrast, share buybacks fell significantly in 2023. The biggest factor in the decline is the banking crisis, with banks repurchasing $29.3 billion worth of stocks in the third quarter of 2023 compared to $61.9 billion in the third quarter of 2021. Companies were cautious due to uncertainty about the economy, according to Howard Silverblatt, senior index analyst at S&P Global. The stronger cash flow last year...
Dividend payouts from S&P companies rise to record high while share buybacks decline. What investors need to know now.
American companies paid out a record amount of dividends last year, while stock buybacks fell sharply. According to CNBC, dividend payouts rose 4.2 percent year-on-year to a total of $588 billion. In contrast, share buybacks fell significantly in 2023. The biggest factor behind the decline is the banking crisis, with banks repurchasing $29.3 billion worth of stocks in the third quarter of 2023 compared to $61.9 billion in the third quarter of 2021.
Howard Silverblatt, senior index analyst at S&P Global, said companies were cautious because of uncertainty about the economy. Stronger cash flow last year still led to an increase in dividends, albeit less than in previous years. Full fourth-quarter numbers are not yet available, but estimates suggest share buybacks continue to decline. This shows a trend where companies maintain their dividend payments while investment in stock buybacks declines.
According to a report by www.deraktionaer.de
Read the source article at www.deraktionaer.de