What to Expect From Dividends and Buybacks

The video discusses the growth of dividends and buybacks, highlighting their impact on the stock market over the past years. It raises concerns about the sustainability of current payout levels due to high payout and leverage ratios. The analysis shows a shift in market performance, with dividend stocks now outperforming buyback stocks. The video predicts a future trend where companies will need to choose between boosting dividends or buybacks, with dividends likely to prevail. The healthcare sector is identified as having potential for growth in dividends and buybacks. The video also addresses the constraints posed by high leverage ratios on maintaining investment grade ratings.

What are the main drivers of the stock market's performance over the last five years?

How have buybacks and dividends changed since 2010?

What is the current situation regarding companies' ability to afford dividends and buybacks?

What factors are contributing to the scarcity of companies that can maintain high dividends and buybacks?

Why do healthcare companies stand out in terms of their ability to boost dividends and buybacks?

What are the implications of high leverage ratios for companies in the S&P 500?

How do payout ratios affect companies' financial profiles and their investment ratings?