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This just in: Investors penalizing buybacks

Aug. 02, 2016 12:55 PM ETPKW, SURE, SYLD, SPYBBy: Stephen Alpher, SA News Editor7 Comments
  • Once thought to be a key driver of the bull market, buybacks are out of favor with investors, according to Goldman Sachs. The stocks of a basket of companies with the highest trailing four-quarter buyback yields underperformed the S&P 500 by a full 280 basis points over the period, according to the bank.
  • At the same time, another basket of names spending the most on capex and R&D has returned 12% this year vs. the S&P 500's 7% advance.
  • In this, Goldman could be talking its book. For some time, the company has urged corporate America to slow stock repurchases (and instead hire its investment bankers to advise on capital raises, capital spending, and M&A?).
  • ETFs: PKW, SYLD, TTFS, SPYB

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