Friday, February 22, 2019

Buyback-driven U.S. stocks defy calls for limits

Potential restrictions on U.S. stock repurchases have yet to turn investors away from the shares of companies most inclined to pursue them. The performance of the S&P 500 Buyback Index, which tracks 100 of these companies, shows as much. In the year through Wednesday, the index climbed 15.5 percent, beating the S&P 500 by 4.1 percentage points. The buyback gauge widened its lead 11 times in the first 12 trading days after the New York Times published a call for limits on stock buybacks by Senate Minority Leader Chuck Schumer and Senator Bernie Sanders. Their opinion piece came out Feb. 4.

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