These names have solid cash flows and are buying back stock, Jefferies says
Share buyback announcements among S & P 500 companies are approaching $1 trillion in 2025, and investors can turn to a few names to help bolster their portfolio’s returns, according to Jefferies. This year, announced share repurchases for constituents in the broad market index have totaled $936 billion, up 30% from the year-ago period, the firm said. These buybacks have helped lift the S & P 500 , which is up more than 8% in 2025. Big names that have shared plans to snap up shares this year include Apple – which announced a $100 billion buyback plan in May – and Uber , which said earlier this month that it would purchase $20 billion of its shares. Like dividends, buybacks are a way for companies to return profits to shareholders. Repurchases reduce the number of shares outstanding, and they suggest that management is confident in the stock’s upward trajectory. They also give companies greater flexibility in rewarding shareholders. “You can do a buyback whenever you want,” said Sam Huszczo, CFP and founder of SGH Wealth Management in Lathrup Village, Mich. “When you set a dividend amount and you cut it because you want to use the cash flow for something else, it’s going to be interpreted as something negative,” he added. “All you can do is grow the dividend. It’s hard to bring it down without destroying sentiment.” To that end, Jefferies shared a list of companies that offer high buyback yields and have the cash flows to sustain them. The firm scanned for U.S. companies with a market cap exceeding $5 billion, a last-12-months’ buyback yield topping 4% and free cash flow yield that covers existing buybacks plus dividends. The companies must also have solid balance sheets, and “relatively better” 2025-2026 earnings per share compound annual growth rates and earnings revisions over the past three months. Tenet Healthcare , an operator of hospitals and health-care facilities, was on Jefferies’ list. Shares have surged 42% in 2025. Last month, the company reported second-quarter results that surpassed the Street’s estimates. Tenet also lifted its full-year guidance , calling for adjusted earnings to range from $15.55 to $16.21 per share, up from $11.99 to $13.12 a share. The forecast also topped the FactSet consensus of $12.85 a share. Tenet’s board also authorized a $1.5 billion increase to its share repurchase program. The stock is widely liked by Wall Street, with 19 out of 24 analysts rating it a buy or strong buy, per LSEG. Consensus price targets call for more than 8% upside from current levels Jefferies called out Mattel on its list. The owner of the Barbie and Hot Wheels brands is about flat on the year, but analysts like the name: Eleven out of 14 analysts deem it a buy or strong buy, and price targets suggest more than 40% upside, per LSEG. Last month, the company reaffirmed its 2025 share repurchase target of $600 million. However, Mattel dialed back its full-year earnings forecast to $1.54 to $1.66 a share, down from its earlier call of $1.66 to $1.72 a share. The FactSet consensus forecast $1.64 per share. D.A. Davidson analyst Keegan Cox noted that the company said it sees $100 million in tariff costs in the second half, which is down sharply from the $270 million it previously expected. “We think MAT should be able to offset all of those costs after already raising prices in the U.S. and is not expecting any additional price increases from here,” the analyst said in a July 23 report. Qualcomm also made Jefferies’ list. In the company’s fiscal third quarter, Qualcomm returned $3.8 billion to shareholders , including $967 million in dividends paid and $2.8 billion in share repurchases. The chip play also has a history of paying solid dividends , steadily growing those payments over the past two decades. Shares are roughly flat in 2025, standing in sharp contrast to its peers that have seen a boost from artificial intelligence. In all, 22 out of the 42 analysts covering the name rate it buy or strong buy, with consensus price targets suggesting 15% upside, per LSEG.
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