W3Schools

Tax cuts continue to drive share buyback boom

The stock buyback boom continued apace in the first-quarter earnings season that is now drawing to a close, with U.S. companies announcing $6.1 billion of buybacks a day, according to Trim Tabs Investment Research.

That’s second only to the roughly $6.6 billion-a-day announced with fourth-quarter earnings, and is a strong indicator of exactly what companies are planning to do with savings generated by the tax revamp that was signed into law in December, said Trim Tabs.

“The buyback boom early this year confirms our view that the main use of corporate America’s tax savings will be takeovers and stock buybacks rather than capital investment or hiring,” the company said in a note.

>>> Original Source <<<