(Bloomberg) -- Companies in the S&P 500 Index will cut their share buybacks by as much as 50% by the end of the year amid the escalating economic disruptions caused by the coronavirus pandemic, according to Goldman Sachs Group Inc.
S&P 500 share repurchases will halve to $371 billion in 2020, while dividends are forecast to drop 25% from a year ago, David Kostin, chief U.S. equity strategist with Goldman, and his team wrote in an April 3 note.
“Firms prioritizing buybacks have lagged year-to-date as investors reward firms reducing debt and those with strong balance sheets,” the strategists said.
Read more: S&P 500 Share Buybacks to Drop 70% This Year, JPMorgan Predicts
Since the start of March, 51 companies accounting for 27% of total buybacks last year have suspended their repurchase programs, while 13 members of the S&P 500 have reduced or halted their dividends during the past month, the report said.
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