Stock Buybacks Are Rarer But Better in Europe Than U.S.: ChartBy
It’s a classic case of low supply, high demand. Though share buybacks are nowhere near as popular in Europe as they are in the U.S., Morgan Stanley strategists say picking stocks that use the policy is working far better in the region. Since global equities bottomed in March 2009, the Solactive European Buyback Index has risen almost fivefold, or three times the returns for the Stoxx Europe 600 Index. While gains for an index of U.S buyback companies is similar, it’s outdone the S&P 500 Index by just 1.6 times in the period.