S&P 500 Companies Pile On Debt Amid Low Rates

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Rupert Hargreaves
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Updated on

There is currently $1.7 trillion of cash on S&P 500 non-financial balance sheets and, according to a new research note from Bank of America, how corporate’s plan to spend this cash should feature heavily in investors’ minds going forward. In Bank of America’s third annual S&P 500 Corporate Cash Primer, which was published on May 19 the bank’s analysts conclude that managements’ preference for stock buybacks is now declining and has been replaced by a growing love of dividends. A “weird” Market Indeed, according to the report, while CapEx has historically been the biggest use of cash (even amid the…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk