Massive Buybacks: 3 Stocks Returning Big Cash to Shareholders

Core Insights - Not all share buyback programs create equal value, as the impact of a buyback program varies significantly based on the company's size and the proportion of the buyback relative to its market capitalization [1][2] Group 1: Fiserv - Fiserv has announced a buyback authorization of 60 million shares, bringing its total buyback capacity to approximately 78 million shares [3][5] - The value of Fiserv's buyback capacity is over $18 billion, which is nearly 14% of its market capitalization of $130 billion [5] - In 2024, Fiserv spent $5.5 billion on share repurchases, a 120% increase from $2.5 billion in 2022 [6] - Fiserv's stock price has risen 103% from the end of 2022 to the beginning of 2025, indicating aggressive share repurchase despite stock price increases [7] Group 2: Analog Devices - Analog Devices has announced a new buyback program of $10 billion, increasing its total buyback capacity to approximately $11.5 billion, which is 9.8% of its market cap of over $117 billion [8] - The company also increased its dividend by 8%, resulting in a yield of nearly 1.7%, which is competitive within its sector [9][10] - Analog Devices has historically repurchased an average of $760 million worth of shares annually over the past 21 years, indicating a more selective approach to buybacks [10][11] Group 3: Allison Transmission - Allison Transmission has announced an additional $1 billion share buyback authorization, bringing its total buyback capacity to $5 billion, which is 59% of its market capitalization of $8.4 billion [12][13] - In 2024, Allison spent over $250 million on share repurchases, which is significant relative to its market cap [14] - The company reported record full-year sales of $3.2 billion and record diluted EPS of $8.31 in 2024, reflecting increases of 6% and 12% compared to 2023 [15]