Companies flush with cash remain reluctant to hire or make capital purchases, choosing to reward investors rather than expand their businesses. Rather than look to expand, though, they've chosen to participate in aggressive share buybacks and dividend increases to reward investors. According to TrimTabs, companies have spent $290.7 billion this year on buybacks, which are aimed at decreasing the amount of available shares-or float-thus driving up stock prices. Worried about growth prospects, S&P 500 companies have been passing out dividend payments with a free hand as well, rewarding shareholders with a record $37.5 billion thus far, rather than hiring.
Business Favours Investors Over Employees
As they should...
Business Favours Investors Over Employees
As they should...