Canceled Stock Buybacks Mount, and They May Not Return for Years
- Shell, Best Buy shelve repurchases as pandemic hits earnings
- Government aid to business to come with buyback restrictions
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However the coronavirus ends up playing out in markets and the economy, the rejection of stock buybacks is beginning to seem like a consequence that will outlive the immediate crisis.
Companies repurchasing their shares served as a reliable prop under the stock market every time there was a dip during the 11-year bull run that just ended. Now the likes of Royal Dutch Shell Plc, Coca-Cola European Partners Plc and retailer Best Buy Co. have joined the list of those halting share buybacks as stockpiling cash becomes the priority.