10 Companies Create Huge Windfall Buying Back Heaps Of Stock (2024)

Now's is easy to see why Congress wanted a piece of S&P 500 stock buybacks. They're very lucrative.

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Ten S&P 500 companies, including Alphabet (GOOGL), RTX (RTX) and Meta Platforms (META), bought back $91 billion of their own shares in the fourth quarter, says just released data from S&P Dow Jones Indices. And shares of these top 10 stock buyback companies are enjoying a bump. They're up 10.4% this year on average, topping the S&P 500's 7.9% rise.

Buybacks are popular, despite Congress slapping them with a 1% tax in 2023. "Fourth quarter 2023 share repurchases were $219.1 billion, up 18% from third quarter 2023's $185.6 billion expenditure, and up 3.7% from fourth quarter 2022's $211.1 billion," said Howard Silverblatt of S&P Dow Jones.

Why S&P 500 Companies Buy Back Shares

The top driver for S&P 500 stock buybacks is simple. The companies are trying to stop their number of shares from inflating due to issuing stock awards to executives and employees, Silverblatt says.

As a result, the number of shares outstanding at the S&P 500 companies is falling by smaller amounts each year. Additionally, the $795.1 billion companies in S&P 500 spent on buybacks in 2023 is actually down from $923 billion in 2022.

But buybacks are still mostly paying off for investors of most the companies making them.

Biggest S&P 500 Buybacks

Ironically, the two largest buyers of their own shares in the fourth quarter don't highlight the trend.

Apple (AAPL) remains the heavyweight for buying its own shares. It paid $22.7 billion in the fourth quarter on its stock. That's more than any other company in the S&P 500. And yet, its shares are down more than 9% in the year so far.

Similarly, Alphabet was the No. 2 biggest buyer of shares to the tune of $16.2 billion. And its shares are up less than 6% this year, lagging the S&P 500.

But that's where most of the large disconnect end. Seven of the 10 largest buyers of stock are beating the S&P 500 this year.

Meta's Buyback Bounce

Meta is the best example of a huge post buyback gain. Shares are up more than 40% this year. The company in the fourth quarter of 2023 ponied up $8.2 billion buying back its stock.

Meanwhile, defense contractor RTX paid $10.3 billion buying its shares in the fourth quarter. That ranks it No. 3 in the S&P 500. And its shares are up 11% this year.

Expect more buybacks if S&P 500 companies keep making money hand over fist, like they are now.

Biggest S&P 500 Buybacks

In the fourth quarter of 2023

CompanySymbolQ4 2023 buyback ($ millions)YTD % ch.
Apple (AAPL)$22,730-9.1%
Alphabet (GOOGL)16,1915.9%
RTX (RTX)10,28311.0%
General Motors (GM)9,99613.6%
Broadcom (AVGO)8,29011.1%
Meta Platforms (META)8,16540.1%
Exxon Mobil (XOM)4,65612.2%
Microsoft (MSFT)4,00011.4%
Visa (V)3,7529.8%
Comcast (CMCSA)3,521-1.9%
Sources: S&P Global Market Intelligence, IBD
10 Companies Create Huge Windfall Buying Back Heaps Of Stock (2024)

FAQs

Which companies buy back the most stock? ›

Biggest S&P 500 Buybacks
CompanySymbolQ4 2023 buyback ($ millions)
Exxon Mobil(XOM)4,656
Microsoft(MSFT)4,000
Visa(V)3,752
Comcast(CMCSA)3,521
6 more rows
Mar 19, 2024

What happens if you buy a lot of stock from a company? ›

Owning more than 50% of a company's stock normally gives you the right to elect a majority, or even all of a company's (board of) directors. Once you have your directors in place, you can tell them who to hire and fire among managers. There are some things that may stand in the way of your doing this.

What happens if you own all the shares of a company? ›

You now own the company. When the election for Board of Directors happens, you get all of the votes, and you can elect a board that will select you as the President and CEO of the company. If you buy all of the stock, it is now YOUR company.

What are shares in business? ›

Shares are units of stocks issued by a corporation that represent ownership. They are sold to investors and traders to raise capital for the company. Many businesses issue stocks and shares when they need funds for research and development, expansion, or other growth opportunities.

Why are so many companies buying back stock? ›

A company might buy back its shares to boost the value of the stock and to improve the financial statements. Companies tend to repurchase shares when they have cash on hand and the stock market is on an upswing. There is a risk that the stock price could fall after a share repurchase.

Which companies are buying back their stock in 2024? ›

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NameReportedBuyback Amount
TREX Trex CompanyMay 9, 2024$5.16M
WTM White Mountains InsuranceMay 9, 2024$7.93M
XOMA Xoma Corp.May 9, 2024$13.12K
BERY Berry Global Group IncMay 9, 2024$452.45B
46 more rows

How much money do I need to invest to make $1000 a month? ›

A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.

How much money do I need to invest to make $3,000 a month? ›

Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.

How much do you need to invest in stocks to become a millionaire? ›

Assuming that you can earn this 10% average return over your investing career, if you are getting started investing this year and you want to become a millionaire in 30 years, you would need to invest $506.60 per month. This amount may seem like a lot, but it may actually be pretty doable for many people.

What is the 10 shareholder rule? ›

(B) 10-Percent shareholder The term “10-percent shareholder” means— (i) in the case of an obligation issued by a corporation, any person who owns 10 percent or more of the total combined voting power of all classes of stock of such corporation entitled to vote, or (ii) in the case of an obligation issued by a ...

What is the most successful penny stock ever? ›

Top 15 Most Successful Penny Stocks in History
  • Nike (NKE)
  • NVIDIA (NVDA) ...
  • Monster Beverage Corporation (MNST) ...
  • Tractor Supply Company (TSCO) All-Time Return: +54,978% ...
  • Axon (AXON) All-Time Return: +48,911% ...
  • ASML (ASML) All-Time Return: +30,001% ...
  • Netflix (NFLX) All-Time Return: +27,719% ...
  • Tesla (TSLA) All-Time Return: +11,641% ...
May 8, 2023

What happens if you own 50% of a company's stock? ›

A majority shareholder is a person or entity who holds more than 50% of shares of a company. If the majority shareholder holds voting shares, they dictate the direction of the company through their voting power.

Do shares make you money? ›

Investors, meanwhile, can make money from stocks in 2 ways: Share appreciation. When a company does well financially or becomes more desirable, the value of its stock can increase. This allows investors to sell their shares to other investors for more than they paid.

What are the 10 wealthiest US corporations trading on the stock market today? ›

*Market cap data as of March, 11, 2023 .
  • Apple (AAPL) Apple designs and makes a variety of consumer tech products and has one of the best known brands in the world. ...
  • Microsoft (MSFT) ...
  • Alphabet (GOOG and GOOGL) ...
  • Amazon (AMZN) ...
  • Meta Platforms (META) ...
  • Nvidia (NVDA)
Mar 12, 2024

How do you get paid from shares? ›

There are two ways you can earn money from shares. First, you buy the shares at a price that you hope will increase over time. This is called capital gain, growth, or return. Second, you may receive an income in the form of dividend payouts.

What is the biggest share buyback ever? ›

After better than expected quarterly results, Apple Inc. has announced a share buyback which is unprecedented in history: a whopping 110 billion dollars. Shares of the US tech giant soared over six per cent on Friday, after the announcement.

What stocks have the highest rate of return? ›

Best stocks by one-year performance
CompanyPerformance (Year)
Meta Platforms Inc (META)88.14%
Leidos Holdings Inc (LDOS)87.65%
Howmet Aerospace Inc (HWM)86.06%
Lilly(Eli) & Co (LLY)84.97%
17 more rows

Which company gives highest return? ›

Highest returns in 5 year
S.No.Name5Yrs return %
1.Diamond Power283.98
2.Authum Invest272.07
3.Waaree Renewab.259.92
4.Orchid Pharma198.04
23 more rows

Which company has highest return on equity? ›

Try another indicator
StockCurrent PriceROE Annual %
Suzlon Energy Ltd.42.2000259.2
Nestle India Ltd.2439.0000117.7
MMTC Ltd.71.4500110.7
Life Insurance Corpo..976.050077.9
21 more rows

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