by Gretchen Morgenson
New York Times
Stock investors have had one sweet summer so far watching the markets edge higher. With the Standard & Poor’s 500-stock index at record highs and nearing 2,200, what’s not to like?
Here’s something. As shares climb, so too do the prices companies are paying to repurchase their stock. And the companies doing so are legion.
Through July of this year, United States corporations authorized $391 billion in repurchases, according to an analysis by Birinyi Associates. Although 29 percent below the dollar amount of such programs last year, that’s still a big number.
The buyback beat goes on even as complaints about these deals intensify.