500 companies return $1 trillion to shareholders in tax-cut surge

[candycorn]

Thoughts?

S&P 500 companies return $1 trillion to shareholders in tax-cut surge

In the 12 months through March, S&P 500 companies paid out $428 billion in dividends and bought up $573 billion of their own shares, according to S&P Dow Jones Indices analyst Howard Silverblatt.

That compares to combined dividends and buybacks worth $939 billion during the year through March 2017, Silverblatt said in a research note.

Earnings per share of S&P 500 companies surged 26 percent in the March quarter, boosted by the Tax Cuts and Jobs Act passed by Republican lawmakers in December.

Companies have been returning much of that profit windfall to shareholders via share buybacks and increased dividends at never before seen amounts, highlighted by Apple’s record $23.5 billion worth of shares repurchased in the first quarter.

Dividends are one thing, buybacks are another.
Both benefit the big fish much more than the street shareholders.

 

[Cellblock2429]

True or false: Tax revenue after the tax cuts is higher?

False. Tax cuts reduce revenue. Only an idiot thinks otherwise.

/——/ Why do department stores have sales, to reduce their revenue?

To get rid of old stock before bringing in new, and to recover the wholesale cost of the goods in the shelves.

/——/ And to raise revenue.....

Sales aren’t held to “raise revenue”. If a store needs to hold a sale to raise revenue, it’s goods are overpriced and the business is failing. That’s because the revenue raised is relatively small.

Retail sales have a very low profit margin. Most retail goods sell for double their wholesale price. If something sells for $20.00, it likely cost the store $10.00. If they sell it at 30% off, their gross profit is only $4. From which they have to pay rent, utilities, wages and advertising. At 40% the gross profit is only $2. They’re barely recovering costs. Sales are NOT a good source of revenue.

Sales are all about turnover. A successful retail store needs to turn over its inventory four times a year. It costs money to keep inventory and styles and tastes change quickly. It’s cheaper and easier to just sell left over inventory than it is to store it until next year.

That’s why stores run sales.

/----/ Some of what you said is true, but the markup on items varies wildly from lost leaders to high end jewelry at 300% markup and more.
Of course all this is changing with online shopping. There are numerous factors besides your costs that affect markup, such as freight, storage, availability and stock turnover. At minimum, consider consumer demand for each product and the prices charged for similar items by local and online competitors. As a result, your markup may vary widely by product line. You might set a higher markup for trendy, in-demand items that are hard to keep in stock. Conversely, it might be more profitable to sell more items at a slightly lower markup, allowing you to turn over your inventory more frequently. Raising revenue is one of the reasons for sales.

 

[Wyatt earp]

Good for shareholders, bad for America in general.

/——/ Why?

Because Trillion+ dollar deficits at a time of normal economic growth is a fucking disaster.

When in history can you point to we had tax cuts with full employment?

 

[bripat9643]

Good for shareholders, bad for America in general.

When has the CBO every been right about anything?

Predicting the future is a tough bussiness, NO ONE will be right on everything.

There are other deficit projections...THEY ARE EVEN WORSE.

And there is not a single serious estimate that shows that Trump’s tax-cuts will not significantly increase already bad deficits we are headed for.

The fact is that the CBO has been singularly unsuccessful at predicting future government revenue and expenses. Of course, by "serious estimate," you mean an estimate by a Trump hating leftist.

 

[healthmyths]

Republicans aren't fiscally responsible. That's a myth. They explode debt for a temporary stimulus for shareholders. When they are out of power they will blame it on others and claim they are the responsible ones to fix it. It's a scam

Just who are "shareholders"???
Hmmmm...

How about some facts regarding these evil capitalistic bad...bad.... "shareholders"!

52% of Americans own any stocks according to a recent Gallup poll and only about 63% of Americans own real estate according to the Census Bureau,
63% of Americans own real estate according to the Census Bureau
What Percentage Of Americans Own Stocks or Real Estate?

How many Americans have pension plans or 401Ks?
In 2015, about 54 million American workers were active 401(k) participants, and there were nearly 550,000 401(k) plans.
As of December 31, 2017, 401(k) plans held an estimated $5.3 trillion in assets and represented 19 percent of the $27.9 trillion in US retirement assets, which includes employer-sponsored retirement plans (both defined benefit (DB) and defined contribution (DC) plans with private- and public-sector employers), individual retirement accounts (IRAs), and annuities. In comparison, 401(k) assets were $3.0 trillion and represented 17 percent of the US retirement market in 2007.

About 67 percent of 401(k) plan assets were held in mutual funds as of the end of 2017.
ICI - 401(k) Plan Research: FAQs

So... mutual funds by stocks. Did these mutual funds then gain in value when dividends and buybacks of nearly a $1T occur?