Which of the following about dividends versus stock repurchases is true in the United States?
A) The relative size of each has held constant since 1980.
B) The size of repurchases has grown relative to dividends since 1980.
C) The size of repurchases has shrunk relative to dividends since 1980.
D) The overall value of stock repurchases has remained constant since 1980.

Question

Quizplus · Accepted Answer

According to data from S&P Dow Jones Indices, the size of stock repurchases has grown relative to dividends since 1980. In 1980, dividends paid by S&P 500 companies were approximately $38 billion while stock repurchases were approximately $4 billion. By 2019, dividends paid increased to approximately $485 billion while stock repurchases grew to approximately $729 billion. Therefore, option B is correct.

Which of the Following About Dividends Versus Stock Repurchases Is