These names have solid cash flows and are buying back stock

Darla Mercado, CFP® | CNBC | August 21st, 2025

Share buyback announcements among S&P 500 companies are approaching $1 trillion in 2025, and investors can turn to a few names to help bolster their portfolio’s returns, according to Jefferies.

This year, announced share repurchases for constituents in the broad market index have totaled $936 billion, up 30% from the year-ago period, the firm said. These buybacks have helped lift the S&P 500, which is up more than 8% in 2025.

Like dividends, buybacks are a way for companies to return profits to shareholders. Repurchases reduce the number of shares outstanding, and they suggest that management is confident in the stock’s upward trajectory.

They also give companies greater flexibility in rewarding shareholders. “You can do a buyback whenever you want,” said Sam Huszczo, CFP and founder of SGH Wealth Management in Lathrup Village, Mich.

“When you set a dividend amount and you cut it because you want to use the cash flow for something else, it’s going to be interpreted as something negative,” he added. “All you can do is grow the dividend. It’s hard to bring it down without destroying sentiment.”