What Will S&P 500 Companies Do With Overseas Cash? More Shares Buybacks, Of Course!
October 24, 2016 at 13:37 PM EDT
I noted in a recent Streetwise column Goldman Sachs strategist David Kostin's view that one of the few things Hillary Clinton and Donald Trump appear to agree on is some sort of tax holiday for overseas profits. Now, Kostin and his team have a new note looking at what S&P 500 companies will do with the cash they bring home. In the past, at least, they've use the cash to buyback shares. And if that's the case again, stocks with both large cash balances overseas and among the large share repurchases-- Gilead Sciences ( GILD ), General Electric ( GE ), AbbVie ( ABBV ), and McDonald's ( MCD ) among them--could benefit. Kostin and team explain:
