Since we’re a dividend-focused website, our top choice of rewarding shareholders tends to be the regular cash payments from stocks. But corporations can reward shareholders in numerous ways – and that includes buying back their own stock. Buyback activity has surged since the 2000s as the preferred method to enhance shareholder returns for many firms.
That is, until the pandemic hit. Over the last year, buyback activity has slowed to a standstill. Thanks to the coronavirus pandemic, companies held onto cash and stopped buying back their shares.
But with the year more than half over, firms are once again starting to open their wallets and buyback stock in a big way. For investors, the surge in buyback activity could provide another huge swell upwards in the market.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary Dividend.com Rating system. Go Premium to find out the entire list.
