If there's one thing investors have been able to count on during this long bull market, it's companies repurchasing record amounts of their own stock. Recent volatility notwithstanding, big stock buybacks are a trend that's expected to continue.
"For the second half of 2018, indications are strong for increased corporate expenditures in both buybacks and dividends, with annual records for both," wrote
Lower corporate tax rates and companies repatriating cash held overseas are helping fuel an acceleration in share repurchase programs, which were already going strong. Indeed, over the past five years, companies in
Although it takes more than share repurchases to support stock prices, they sure do help - and investors generally love them. When it comes to returning cash to shareholders through stock buybacks, these are the most generous companies over the past half-decade.
7. Citigroup
Market value: $167.3 billion
Dividend yield: 2.6%
Stock buybacks, past five years: $38 billion
Citigroup (C, $68.26) has been a major purchaser of its own shares over the past five years as it endeavored to recover from lingering wounds from the financial crisis. Now that the bank is healthy once more, you could say its share repurchases are just getting started.
In a nod to the bank's strong capital position, the
6. Cisco Systems
Market value: $218.0 billion
Dividend yield: 2.8%
Stock buybacks, past five years: $41.7 billion
In February, the company said it would accelerate its share repurchases, fueled with its more than $70 billion in cash held offshore.
5. Oracle
Market value: $190.0 billion
Dividend yield: 1.5%
Stock buybacks, past five years: $44.1 billion
Oracle (ORCL, $50.26) is another
There's more to come. In September, Oracle's board of directors raised the company's stock buyback program by $12 billion. The massive returns of cash to shareholders have helped undergird ORCL stock despite
4. JPMorgan Chase
Market value: $374.7 billion
Dividend yield: 2.9%
Stock buybacks, past five years: $45.5 billion
JPMorgan Chase (JPM, $111.48), the nation's largest bank by assets, also has been one of the biggest buyers of its own stock. Like Citigroup, in some ways the financial firm is just getting started.
A clean financial bill of health from the Fed allowed JPMorgan in June to announce a windfall of cash returns to shareholders. The bank hiked its quarterly dividend by 43% to 80 cents a share from 56 share. As for stock buybacks, the board authorized repurchases of up to $20.7 billion by
3. Wells Fargo & Co.
Market value: $251.3 billion
Dividend yield: 3.2%
Stock buybacks, past five years: $46.8 billion
Wells Fargo repurchased nearly $47 billion of its own stock over the past half-decade, and it's revved up to buy more. With the Fed's blessing, Wells Fargo announced a 10% dividend hike in June and unveiled a stock buyback plan of up to $24.5 billion, to be executed over the four quarters ending
2. Microsoft
Market value: $859.4 billion
Dividend yield: 1.6%
Stock buybacks, past five years: $60.2 billion
Microsoft (MSFT, $111.96) has been a total-return machine over the past five years. The stock is up 196% on a price basis, according to data from
MSFT has delivered average annual earnings-per-share growth of 12% over the past five years, according to data from Thomson Reuters, helped by more than $60 billion in stock buybacks. For the three months ended
1. Apple
Market value: $987.8 billion
Dividend yield: 1.4%
Stock buybacks, past five years: $208.6 billion
It should come as no surprise that the runaway buyback champion is
Heck, in the past five years,
Dan Burrows is a Contributing Writer for Kiplinger.