Still casting about for a long-term investing strategy? How about "Follow the money"? Get ready for a flurry of stock buybacks and dividend payouts over the next couple of years, predicts Deutsche Bank Chief Strategist Binky Chadha, thanks to record amounts of cash building up in corporate coffers. His team has identified 50 companies most likely to participate in this payout upcycle.
These large companies found themselves with an embarrassment of riches because their costs got slashed faster than revenues over the past couple of years. Even though other corporate purposes also are in line for budget increases, Mr. Chadha figures about $100 billion this year and another $200 billion next year will go to dividend payouts "just to keep the cash mountain from growing."
Source: Wall Street Journal
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