Stock Buybacks
According to Ford Equity Research in San Diego, companies that have reduced by at least 5% the number of their shares (through buybacks) over the previous year have averaged annualized returns of 14% since the beginning of 1998 (through the first part of 2013) vs. a 6.8% annual return for the S&P 500. The index used by Ford is called the Buyback Achievers Index. From its late 2006 inception through May 21, 2013, the PowerShares Buyback Achievers ETF (symbol DRB) had a total return of 35.3% vs. 16.7% for the S&P 500.