Share buybacks — one of the stock market’s strongest growth drivers — fizzled out in the second quarter of 2019 and is projected to decline further though the year and into 2020, Goldman Sachs analysts wrote. Repurchases fell 18% year-over-year in the second quarter, and total buybacks are projected to fall 15% in 2019, according to Goldman. Buyback programs boost share prices and earnings per share by reducing the number of shares outstanding. While spending on buybacks is projected to slow, the analysts anticipate S&P 500 firms will boost dividend payments by 5% in 2020. Visit the Business Insider homepage for more stories.
Share repurchases from S&P 500 firms are expected to fall year-over-year and cut off a key growth driver for the