FTSE 100 firms have announced plans to return £26.9 billion via buyback schemes so far this year as 2022 saw record FTSE 100 buybacks of £55.8 billion.
This supplements a forecast aggregate dividend pay-out of £83.6 billion for 2023.
However this could change depending on the direction of the global economy in the second half of the year.
“The debate over the rights and wrongs of the bumper profits made by HSBC and BP will run and run but from the narrow perspective of investment their announcement of fresh multi-billion dollar share buyback schemes – topped up by a fresh programme at Ashtead – means that the FTSE 100 cash return bonanza continues,” says AJ Bell investment director Russ Mould. “Sentiment still seems lukewarm at best toward UK equities, despite the buybacks and rash of takeover deals, but the money keeps flowing. After this trio of announcements, FTSE 100 firms have announced plans to return £26.9 billion to their shareholders via buybacks this year.
“That figure supplements a forecast aggregate dividend pay-out of £83.6 billion for 2023 and comes on top of 2022’s all-time high for FTSE 100 buybacks of £55.8 billion. Whether the final total for 2023’s buybacks will match or exceed that of last year remains open to question, and much may depend on the trajectory of the global economy in the second half, but we are certainly off to a fast start.”