I guess I am in school but it hasnt felt like a "record profit" year to me. Perhaps there is a disconnect between citizen prosperity and corporate prosperity?
Dividends, Buybacks Set New Benchmark for Largess
As Corporate Coffers Swell, Holders Reap the Rewards; The $1,700-a-Head Bracket
November 28, 2005
Cash-rich American companies are showering a record windfall on their shareholders -- and in the process stirring some concern about future growth of the U.S. economy.
This year, the companies in the Standard & Poor's 500-stock index are on track to pay out more than $500 billion to shareholders in the form of dividends and share repurchases, or buybacks, according to S&P. That's up more than 30% from last year's record -- and equivalent to nearly $1,700 for every person in the U.S.
The flood of dividends and share buybacks is a direct result of record U.S. corporate profits and is welcome news for shareholders, particularly because dividends are taxed at lower rates and share prices have been flat; since the beginning of the year, the Dow Jones Industrial Average has risen a paltry 1.4%.
