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Record Buybacks Put Shareholder Payouts on Pace for $1 Trillion

  • 1Q repurchases from S&P 500 firms surged 34%, led by tech
  • Capital expenditure picked up as well, with a 21% increase

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The Importance of Buybacks in Driving Share Price

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American companies are investing in their own stocks at a record pace, drawing a fresh attack from Senate Minority Leader Charles Schumer that President Donald Trump’s tax cuts were benefiting the wealthy.

After buybacks among S&P 500 Index members hit a record in the first quarter and more than a third of the index raised dividend payments, corporations have returned $992 billion to shareholders in the past 12 months. At the current rate, 2018 will mark the first year that corporate America showers investors with more than $1 trillion.