Goldman Sachs analysts point out that most companies cannot buy stock in the five weeks prior to reporting earnings, which coincided with the S&P 500 peak on September 18. Essentially, buyback activity slows during earnings months but quickly picks up after reporting, which investors can expect at the end of October.
“The 12-month total shareholder return, which is buyback and dividends, was $866 billion for the 12 months ending in June. That was an all-time record,” Silverblatt added. “As long as we don’t tank in buybacks—and it doesn’t look like we will—we’re going to get another shareholder return record.”
PowerShares Buyback Achievers Portfolio
For more information on buyback stocks, visit our buyback ETFs category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of TTFS.