Stock Buybacks: 6 Quality Companies Rewarding Investors

Stock buybacks have been big in recent years, and these six firms are repurchasing impressive amounts of their own shares.

suitcase full of cash
(Image credit: Getty Images)

One of the primary reasons companies undergo stock buybacks is because it can have a salubrious effect on the shares that remain outstanding. Mathematically, this is true. 

A simple example will illustrate the point. If a company has 1 million shares outstanding, earns $2 per share and trades at $30 per share, it has a price-to-earnings (P/E) ratio of 15, i.e., $2 per share times 15 equals $30. But what happens if this company buys half of its shares back? Its earnings per share will become $4. If the market continues to value the company at 15 times earnings, the stock price should trade up to about $60, a big jump. 


Data is as of March 29. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. 

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Louis Navellier
Contributing Writer,