One of the big themes since the financial crisis has been the mountains of cash that companies were accumulating and what they were doing with it.
With limited growth prospects, companies were reluctant to spend aggressively on capital expenditures.
With interest rates near zero, cash was generating no return.
So, companies have been shoveling that cash back to shareholders through dividends and share buybacks.
However, those buyback announcements are starting to slow.
“$89 bln in authorizations were recorded during the third quarter, the lowest level since the third quarter of 2010,” note Laszlo Biriniyi.
Here’s a chart of buyback announcements from Biriniyi:
Photo: Ticker Sense