الأربعاء, 28 شباط/فبراير 2018 08:13

Tax Cuts are Sparking Dividends and Buybacks

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(New York)

After a lot of talking, the long awaited hypothesis that tax cuts at the federal level would lead to more dividends and buybacks is actually proving true. More than 20% of companies have raised their dividend so far this year, with none cutting them, the first time that has happened since 2011. The hikes are also getting bigger, averaging 14% this year. The downside for the economy is that while tax cuts have also led to buybacks, they have not flowed into increased corporate spending and investment.


FINSUM: This is very good news for shareholders, but it does put a damper on hopes that the tax cuts may spur economic growth through corporate investment.

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