Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  Creating Value For The Shareholder
Posted Under: Themes
Supporting Image for Blog Post

 

View from the Observation Deck

  1. The dividend and buyback yield on the S&P 500 stood at an estimated 5.33% at the close of 2012, just below the 5.39% quarterly average since Q4'06.
  2. In addition to paying shareholders a quarterly cash dividend, companies can also initiate stock buyback programs in an attempt to boost earnings per share by reducing outstanding share count.
  3. Simply announcing a stock buyback program does not necessarily mean it will be carried out to the fullest, or be successful in reducing share count.
  4. Some companies initiate share buybacks simply to facilitate the exercising of employee stock options, or to stave off earnings per share dilution.
  5. In 2012, S&P 500 buybacks surpassed total dividend payouts by $109.2 billion, according to S&P Dow Jones Indices.
  6. S&P Dow Jones Indices expects companies in the S&P 500 to distribute $300 billion in stock cash dividends in 2013, up from a record $282 billion in 2012, according to The Wall Street Journal.
  7. U.S. companies, extending beyond the S&P 500, announced in February their intent to buy back $117.8 billion of their own stock, the highest monthly total dating back to 1985, according to Birinyi Associates.
  8. Those investors looking for an opportunity to get some capital back into the stock market might want to consider looking at a portfolio of companies raising their dividends and buyback efforts, in our opinion.


This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions or other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance.

To download a PDF of this post, click here.

Posted on Tuesday, April 2, 2013 @ 2:59 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Is A Gold Rally Waiting On Inflation?
Home Prices And Homebuilder Stocks Are Still Recovering
Equities Look Even More Attractive After Being Adjusted For Inflation
The Consolidation Of The U.S. Equities Market A Potential Plus For Large-Cap Companies
Attention Shareholders
Let’s Wind The Clock Back To 2007
Retail Investors May Finally Be Warming Up To U.S. Stocks
The S&P 500 Is Not Expensive Based On Historical Standards
Looks More Like A Step Stool Than A Ladder
Perspective on Market Patterns
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.