Common Stock Repurchases: A Bane or Boon to Shareholders?

Repurchases of common stock by corporations can be an attractive alternative to dividends. They may also affect share price. But what is their impact—to the corporation; to the shareholder? Many companies have been repurchasing their common stock in recent years and some can involve hundreds of millions or even billions of dollars. Investors who own…

 

Companies Cut Share Buybacks

This week S&P Dow Jones Indices (S&P DJI) reported preliminary data indicating that S&P 500 stock buybacks (shares repurchases) fell 17.5% in the first quarter of 2017 to $133.1 billion from $161.4 billion in the first quarter of 2016. For the 12-month period ending March 2017, S&P 500 companies spent $508.1 billion on buybacks, down…

 

Analyzing a Stock by Its Dividend and Shareholder Yield

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: High Buyback Yields James O’Shaughnessy, in the fourth edition of his book “What Works on Wall Street” found that stocks with the highest buyback yield (top 10%) outperformed the overall stock universe by an average of 3.2 percentage points a year from the start of 1927…

 

From Saver to Spender: Managing Your Money in Retirement

This week’s AAII Weekly Features highlight these valuable AAII articles: Qualitative Guidelines for Mutual Fund Selection: Looking at the type and frequency of communications, portfolio holdings, manager stability and expense ratio caps can help with the fund selection process. Retirement Readiness Is Being Assessed in the Wrong Manner: No consensus exists on an acceptable risk…