Buybacks and Dividends All That’s Left in S&P 500, Goldman Says
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The $1 trillion that U.S. companies are on track to return to shareholders this year will constitute the market’s entire return in 2015, according to Goldman Sachs Group Inc.
Dividends and buybacks will be responsible for supporting a market where the median stock in the Standard & Poor’s 500 Index is trading at 18.2 times earnings, putting it in the 99th percentile of historical valuation, the firm said in a note to clients. Goldman Sachs forecasts that the S&P 500 will rise to 2,150 by mid-year before fading to 2,100 by the end of 2015.