For the last several years, big US companies have lived by an unswerving rule: buy back shares to increase returns to shareholders.
Investors, too, have benefited from company spending habits as they bought shares of the biggest repurchasers.
This year has been a bit different. The buybacks have continued, but companies doing them have trailed the S&P 500 stock index as investors anticipate higher interest rates.
Headed into 2016, with the Federal Reserve beginning what many expect will be a prolonged, if slow, cycle of interest rate increases, analysts say the quality of a company's balance sheet could matter as much as whether it is reducing the number of shares on issue.
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Investors, too, have benefited from company spending habits as they bought shares of the biggest repurchasers.
This year has been a bit different. The buybacks have continued, but companies doing them have trailed the S&P 500 stock index as investors anticipate higher interest rates.
Headed into 2016, with the Federal Reserve beginning what many expect will be a prolonged, if slow, cycle of interest rate increases, analysts say the quality of a company's balance sheet could matter as much as whether it is reducing the number of shares on issue.
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