The prevailing narrative is that the Trump tax cuts (which cut the corporate rate from 35% to 21%) have been a boon for shareholders.  Companies flush with cash have showered riches on their shareholders through increased dividends and stock repurchases.

Is this true?  Maybe.

In dollar terms it’s certainly true.  Spending by S&P 500 companies is up.  Measuring spending relative to market capitalization, however, tells a different story.  Using that calculation buybacks are below those that took place during several quarters of the Obama administration.  Dividends using the same measure have declined.

Never let facts get in the way of a good story!