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Corporate America All In On Stock Buybacks

Published 07/13/2018, 07:40 AM
AAPL
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Investing.com - Corporate America has a case of stock buyback fever.
Companies announced a record $436.6 billion in stock buyback programs during the second quarter, twice as much as in the first quarter, according to research firm TrimTabs.
Corporate America has saved tens of billions of dollars because of the Trump administration's tax cut late last year, and companies have decided to share that wealth with shareholders.
Apple (NASDAQ:AAPL)'s buyback program is the largest announced so far. At $100 million, it dwarfs the other top five.
Experts say companies like buybacks because they improve earnings and tend to boost a company's stock price.
Critics say the money would be better spent if it was used to invest in new plants and equipment as well as worker salaries and benefits.
Thus far, companies have announced tax cut-related bonuses for more than 4 million workers, according to Americans for Tax Reform.

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