BOSTON (AP) — America's biggest corporations dipped into their cash reserves and spent more to buy back their stock in the second quarter after six months of decreases.
S&P Dow Jones Indices said on Thursday that share repurchases by companies in the Standard & Poor's 500 index totaled nearly $112 billion from April through June. That's up about one-third from $84 billion in the first three months of the year.
Repurchases are attractive options now for companies to put their cash reserves to work. Cash holdings have risen steadily since the financial crisis, climbing above $1 trillion among S&P 500 companies.
By repurchasing stock, companies reward investors by increasing the value of remaining shares. Per-share earnings can also get a lift as results are divided among fewer shares.