Share buybacks at a record level: corporations drive their courses

share buybacks

Share buybacks are also controversial because the companies don’t invest their profits in new technologies.

Dusseldorf Concerns in the economy about horrendous energy prices, rising interest rates and a recession are growing day by day. Nevertheless, the companies are taking more money than ever before to buy up their own shares and withdraw them – and thus give presents to their shareholders.

Eventually, corporations tighten supply and spread profits and dividends across fewer shares, which usually pushes prices up. The 500 companies in the American S&P 500 index alone announced new share buyback programs for a total of 985 billion dollars within a year.

That’s more than ever, and according to calculations by the financial data specialist S&P Dow Jones, it’s 11.7 percent more than a year ago. The companies themselves are thus the largest group of buyers on the stock exchange. iPhone maker Apple bought $92.4 billion of its own stock in just one year.

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