Several stocks now have the ability to buy back a very large amount of their shares. Following recent announcements, these stocks can buy back nearly 10% or more of their market cap. This means that they could significantly reduce their outstanding share count, providing a tailwind to their earnings per share (EPS). Because higher EPS often results in higher share prices, this reduction in share count can often mean higher share prices.

Below are the details on these three names. Unless otherwise indicated, all metrics use data as of the April 25 close.

ASML: Chip Equipment Giant Looks to Repurchase 10% of Shares

On April 23, ASML (NASDAQ: ASML) approved a long list of proposals at its Annual General Meeting. Among them was a proposal to repurchase a maximum of 10% of ASML’s issued share count. Interestingly, the semiconductor stock may be looking to execute these repurchases at a very brisk pace. The buyback authorization only lasts through Oct. 2026, just 18 months from now.

Based on a market capitalization of around $263 billion, the company could spend around $26 billion on buybacks during this period.

For reference, only five companies have spent more than $20 billion on buybacks over the last 12 months. Overall, this would be a very large amount of buyback spending for ASML in a relatively short timeframe. This pace of spending would make sense considering the firm’s buyback activity last quarter, when it spent nearly $3 billion.

Last quarter was the firm’s highest buyback spending since Q4 2021.

Another proposal approved at the annual general meeting was a significant increase to the company’s dividend. The company’s annual dividend has increased by under 5% to around $7.27 per share (6.40 euros), giving the stock an indicated dividend yield of approximately 1%.

This comes as the company approved the final $2.09 (1.84 euros) portion of this annual dividend. These figures rely on a USD/EUR exchange rate of 1.13. For the stock’s shares traded on the New York Stock Exchange, this final dividend will be payable on May 6 to shareholders of record on April 28.

Synchrony Financial: Set for Billions in Buybacks, Dividend Gets a Big-Time Boost

On April 22, Synchrony Financial (NYSE: SYF) announced that it had approved a share buyback program worth $2.5 billion. For this financial services firm worth just under $20 billion, this buyback capacity equals just under 13% of its total value. Like ASML, the firm intends to use this buyback capacity very quickly. The program only lasts until the end of Jun. 2026, approximately 14 months away.

This would mean approximately doubling its buyback spending compared to the last 12 months. However, the company did spend over $3 billion on buybacks in 2019, 2021, and 2022.

The company also announced a very large increase to its quarterly dividend of 20%. The new $0.30 per share dividend will be payable on May 15 to shareholders of record at the close of business on May 5. This gives the firm a solid indicated dividend yield of around 2.3%.

Equifax: Could Take Its Buyback Pace From (Almost) Zero to 100

Last up is Equifax (NYSE: EFX). On April 22, the company announced that its Board of Directors had approved a $3 billion share repurchase program. This is equal to approximately 9.4% of the firm’s market capitalization. However, in contrast to the other two firms on this list, the company plans to use its buyback capacity at a much more measured pace. The company expects to execute the program over the next four years.

Still, even if the firm spends $750 million on buybacks in each of the next four years, that would represent a massive increase in the firm’s buyback activity. Over the last 10 years, the company has spent an average of just $60 million a year on buybacks.

The company also announced a huge increase to its dividend of 28%, raising its quarterly payout to $0.50 per share. Still, the company’s dividend yield is small at less than 0.8% after the raise. The dividend will be payable on June 13 to shareholders of record on May 23.

Overall, these three firms are ready to considerably increase the pace at which they return capital to shareholders. With many stocks taking big hits lately, firms may see an opportunity to buy back their stock while the price is cheap.

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