Buy Dividends, Not Buybacks

Seeking Alpha | Apr 3, 2020 at 4:38 PM
  • Buybacks have been a key US market support.
  • Lower earnings, high economic uncertainty, and government support restrictions will likely combine to see a dramatic fall in share buybacks going forward.
  • It is dominated by the Financials (24%), IT (23%) and Discretionary (17%) sectors, and has underperformed the S&P 500 10% YTD, similar to its global financial crisis (GFC) underperformance.