File - A view of the Exxon Mobil refinery in Baytown, Texas September 15, 2008. REUTERS/Jessica Rinaldi
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Shareholders in the biggest US companies stand to receive a record $1tn in cash this year, as blue chips' concerns over the global economic outlook has diverted cash away from investment and is driving a boom in buy-backs and dividends.Shareholder returns reached nearly $904bn in 2014, with $350bn in dividends and $553bn in buy-backs, official data from S&P Dow Jones Indices shows. With record cash levels of $1.3tn in 2014, Nicholas Colas, chief market strategist at Convergex, said that companies believed increasing returns to shareholders "the right thing to do versus just hoarding the cash". But critics see the buy-backs as rewarding company executives and their share option plans, and argued that a focus on shareholder returns at the expense of investment could damage the performance of the economy in the future.
FOLLOW THIS ARTICLE