Avoid Companies Buying Their Own Stocks

By David I.

(NEW YORK) — For the second time in less than a month, the American stock market marched past another milepost on its long, turbulent journey back from the Great Recession, toppling another record left over from the days before government bailouts and failing investment banks. The Standard & Poor’s 500 closed at a new high Thursday, three weeks after another popular market gauge, the Dow Jones industrial average, obliterated its own closing record. The reaction on Wall Street was muted — more of a dull buzz than a victory cry. Investors warned clients not to get overly excited.

(NEW YORK) — For the second time in less than a month, the American stock market marched past another milepost on its long, turbulent journey back from the Great Recession, toppling another record left over from the days before government bailouts and failing investment banks. The Standard & Poor’s 500 closed at a new high Thursday, three weeks after another popular market gauge, the Dow Jones industrial average, obliterated its own closing record. The reaction on Wall Street was muted — more of a dull buzz than a victory cry. Investors warned clients not to get overly excited.

By greg group: The number of S&P 500 Index companies paying dividends is the highest in over a decade. According to data compiled by Howard Silverblatt, senior index analyst at S&P Indices, the total number of dividend payers has climbed to 401. The analyst estimates total payouts in 2012 to be a record of $279 billion.

By Debra Fiakas, CFA: In the first four weeks of the fall season (beginning September 21, 2012), U.S. public companies have announced intentions to repurchase a combined $28 billion in stock. When fully executed, share buybacks offer liquidity to the market and have the potential to nudge valuation higher.

By David Hunkar: The extreme volatility in the equity markets in the past few weeks is making many investors nervous. Some are making the wrong moves based on emotions. Yesterday’s Wall Street Journal had an article discussing how some people are liquidating their equity holdings and moving into cash. From the article, titled “Tired of Ups and Downs, Investors Say, ‘Let Me Out!‘”:

Andrew Wilkinson submits: Lincoln National Corp. (LNC) – Rumors that Manulife Financial submitted a $32.00 per share offer to buy Lincoln National Corp. fueled a 7.8% rally in LNC’s shares to an intraday high of $23.20 as of 12:50 pm ET.