Are Stock Buybacks Starving the Economy?

Stock buybacks are eating the world. The once illegal practice of companies purchasing their own shares is pulling money away from employee compensation, research and development, and other corporate priorities—with potentially sweeping effects on business dynamism, income and wealth inequality, working-class economic stagnation, and the country’s growth rate. Evidence for that conclusion comes from a […]

To forecast share returns, count buy-backs as well as dividends

WHAT is the point of buying shares? Ultimately investors must hope that the cash they receive from the company will offer an attractive long-term return. Over the long run, reinvested dividends rather than capital gains have comprised the vast bulk of returns. But since the 1980s American firms have increasingly used share buy-backs, which have […]