In 2014, U.S. companies spent $679.5 billion on buybacks, and if the current pace of share repurchases continues, S&P 500 companies are set to exceed previous records. Birinyi expects buybacks to hit $1.2 trillion this year, compared to the previous record of $863 billion in 2007, reports Dan Strumpf for the Wall Street Journal. [Buyback ETFs: Companies Fueling Their Own Stock Growth]
Corporate America has been holding on to cash in the years following the financial crisis and have recently put that money to work through shareholder-friendly programs, like dividends and buybacks, which have helped fuel the multi-year rally and supported valuations through reducing open shares.
For more information on stock buybacks, visit our buyback category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of TTFS.