Investing
5 Huge January Stock Buybacks Too Big to Ignore
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Investors love dividends. They also love stock buybacks. At the higher tax-bracket, some investors actually do better after their taxes and fees on buybacks (capital gains) than they do off dividends. So what happens when some stock buyback announcements are too big to ignore?
The dirty little secret is that companies buying back lots of stock are keeping their share prices higher. Sometimes it is buybacks alone that are driving the buying frenzy during volatile markets. It goes without saying that January was more than just volatile. Companies have been buying back literally a combined total of hundreds of billions of dollars worth of stock each year of late.
24/7 Wall St. has been looking into the larger buybacks that stood out from the pack. Companies like Cisco and IBM buy shares back endlessly, sometimes without anyone noticing. Other companies are making large inroads in share buybacks, and some of them do not even have to borrow money or take repatriation penalties to do so.
There were five such buybacks that really stood out in January. These are not at all the only large buyback announcements made. They were just the ones that could not be ignored.
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