2018-05-23 09:41:00 Wed ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
Many U.S. large public corporations spend their tax cuts on new dividend payout and share buyback but not on new job creation and R&D innovation. These public corporations channel $1 trillion onshore and offshore cash stockpiles into dividend and share buyback programs. For instance, Apple expects to spend $100 billion cash on share repurchases from mid-2018 to early-2020. Cisco spends $25 billion on share buyback, and Wells Fargo plans $22 billion share purchases. Google also expects to spend about $9 billion on dividend payout and share buyback in order to boost its near-term stock price prospects. Pepsi, AbbVie, and Amgen collectively spend $35 billion on share repurchases for better shareholder value maximization. Visa and eBay plan to initiate similar dividend and share buyback programs over the next couple of years.
Overall, these public corporations seem to view Trump tax cuts are temporary cash windfalls but not permanent cash gains. These companies initiate cash dividends and share repurchases for immediate shareholder gratification. It is thus less clear whether Trump tax cuts serve as permanent income boosts that can help revive real economic output, employment, capital investment, or R&D innovation etc.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2016-11-09 00:00:00 Wednesday ET
Universally dismissed as a vanity presidential candidate when he entered a field crowded with Republican talent, the former Democrat and former Independent
2019-08-24 14:38:00 Saturday ET
Warren Buffett warns that the current cap ratio of U.S. stock market capitalization to real GDP seems to be much higher than the long-run average benchmark.
2027-04-30 12:31:00 Friday ET
In recent years, the current AI-driven stock market rally may or may not turn out to be another major asset bubble in global human history. For the pract
2025-05-21 04:27:10 Wednesday ET
Carol Dweck describes, discusses, and delves into the scientific reasons why the growth mindset often helps motivate individuals, teams, and managers to acc
2019-05-07 09:30:00 Tuesday ET
The Trump team receives a 3.2% first-quarter GDP boost as Fed Chair Jay Powell halts the next interest rate hike in early-May 2019. This smooth upward econo
2019-01-02 06:28:00 Wednesday ET
New York Fed CEO John Williams listens to sharp share price declines as part of the data-dependent interest rate policy. The Federal Reserve can respond to