Stock Buybacks Surge for S&P 500 Companies
According to Jefferies, S&P 500 companies are set to announce stock buybacks nearing $1 trillion by 2025. This is potentially good news for investors looking to boost their portfolio returns. This year alone, share repurchases by these companies reached $936 billion, marking a 30% increase from last year. These buyback initiatives are among the factors contributing to the S&P 500’s rise of over 8% in 2025.
Notable companies planning to repurchase their shares include Apple, which revealed a plan to buy back $100 billion worth of stock back in May. Share buybacks can serve as a means for companies to return profits to their shareholders, much like dividends. By reducing the number of outstanding shares, it often signals that management is optimistic about future growth. Companies also enjoy more flexibility when rewarding shareholders through buybacks, as noted by Sam Hasizo, a CFP from Michigan. He mentioned, “We can make a buyback at any time.” In contrast, he pointed out that growing dividends can be trickier.
Jefferies also compiled a list of firms with high buyback yields that maintain sufficient cash flow to support them. The criteria included U.S. companies with a market cap over $5 billion and at least 4% buyback yields over the last year, alongside free cash flow sufficient for existing buybacks and dividends. Companies also required a strong financial standing and a notable earnings growth rate projection through 2026.
Tenet Healthcare, a hospital operator, made it onto Jefferies’ list, experiencing a 42% stock increase in 2025. The company recently reported second quarter financial results that exceeded expectations and raised its full-year guidance—suggesting earnings between $15.55 and $16.21 per share, surpassing the consensus estimate of $12.85. Additionally, Tenet’s board approved a $1.5 billion increase in its stock buyback program, prompting a favorable outlook from Wall Street, where 19 out of 24 analysts rated it as a buy or strong buy.
Mattel, known for its Barbie and Hot Wheels brands, was also highlighted by Jefferies. Although the stock has remained relatively flat this year, it garnered attention from analysts. Of the 14 analysts reviewing it, 11 rated it a buy or strong buy, anticipating a price target increase of 40% or more. Mattel reaffirmed its stock repurchase goal of $600 million for 2025 but adjusted its annual earnings forecast down from a range of $1.54–$1.72 per share to between $1.66 and $1.72, slightly below the FactSet consensus of $1.64.
Finally, Qualcomm is another name on Jefferies’ radar. In its third quarter, the company returned $3.8 billion to shareholders, which included $967 million in dividends along with $2.8 billion in stock buybacks. Historically, Qualcomm has maintained a solid dividend record, consistently increasing payouts over the past two decades. However, its stock performance has been relatively stagnant in 2025, contrasting with industry peers benefiting from advancements in artificial intelligence. The consensus price target from analysts suggests a 15% upside from the current standing, with 22 of the 42 analysts recommending buys or strong buys.
