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.
2018-08-27 09:35:00 Monday ET
President Trump and his Republican senators and supporters praise the recent economic revival of most American counties. The Economist highlights a trifecta
2017-12-14 12:41:00 Thursday ET
Federal Reserve raises the interest rate by 25 basis points to the target range of 1.25% to 1.5% as FOMC members revise up their GDP estimate from 2% to 2.5
2019-07-09 15:14:00 Tuesday ET
The Chinese new star board launches for tech firms to list at home. The Nasdaq-equivalent new star board serves as a key avenue for Chinese tech companies t
2025-01-22 08:35:08 Wednesday ET
President Donald Trump blames China for the long prevalent U.S. trade deficits and several other social and economic deficiencies. In recent years, Pres
2018-03-05 07:34:00 Monday ET
Peter Thiel shares his money views of President Trump, Facebook, Bitcoin, global finance, and trade etc. As an early technology adopter, Thiel invests in Fa
2017-09-13 10:35:00 Wednesday ET
CNBC reports the Top 5 features of Apple's iPhone X. This new product release can be the rising tide that lifts all boats in Apple's upstream value