A Modest Rebound in Stock Buybacks

Analyst Note: Buybacks rebound 44%; Financial dilution increase 25% S&P 500 buybacks rebounded 44% ($34.85B) from their record Q2 low ($24.20B; data series starts in Q1,’98) Information Technology increases 121.5% ($10.54B from $4.76B), but remains 52.1% below Q3,’08 ($21.97B); sector accounts for largest share (30.23%) Consumer Staples picks up 66.9% ($6.70B from $4.01B; down 45.02% from $12.18B Q3,’08); increasing dividends (best, most consistent sector this year), only sector to have a positive total return from the Oct,’07 high Energy declines 15.4% ($4.52B from $5.34B); ex-XOM ($4.23B for the quarter) the sector expenditure was minor 195 issues did buybacks in Q3, up 15.4% from the 169 in Q2,’09, and on par with the 193 in Q3,’08 For the second quarter in a row, none of the issues made the top 20 historical list for largest stock buybacks

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