2010 Buybacks Set % and $ Record – But Will Investors Bite Again?

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The headline news is that S&P 500 companies spent $299 billion on stock buybacks in 2010, up $161 billion or 117% from the $138 billion they spent in the 2009 – both the percentage and dollar value increase are record highs. The details explains the reason for the headline is because of the 76.5% decline in buybacks (2009 from 2007, down $451B), with the 117% or $161 billion bounce back resulting in the year-over-year record. We remain, however, at half of the 2007 $589B level.

The attached reports give the details, along with charts, tables, and some issue level for where we have been. To see the report click here Buybacks_20110323.doc

For the first quarter of 2011 (no reporting yet), I believe companies continued to be cautious and, in general, purchased more shares than needed for options, enhancing Q1 EPS.
For the remainder of 2011, subject to…