BofA: Buybacks and dividends could 'rescue' the stock market

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Analysts at Bank of America (BofA) believe that American corporations can "rescue the stock market" by returning to investors a significant part of their money supply of $ 7.1 trillion in the form of dividends and share buybacks (buyback). This is reported by Markets Insider.

Since January 2022, the S&P 500 index has fallen by more than 15%, the NASDAQ 100 index by about 30%, which represents the worst decline in the market since 1974. U.S. share buybacks and dividends are at a 12-year low, with 13% of S&P 500 companies issuing non-voting shares, leaving most control to senior management, according to the bank.

“Investors want more payouts,” BofA explained.

As the newspaper notes, companies, in all likelihood, are ready to become more "friendly" to their shareholders - this is evidenced by the growing popularity of the share split procedure (recent examples include the split of Amazon, Alphabet and Tesla). Against this background, BofA expects to see a 13% increase in dividends of American companies in 2022.

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