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Special Report 3 Stocks Delivered +10% Buyback Yields in 2025—What's Next in 2026?Authored by Leo Miller. Originally Published: 1/5/2026. 
Key Points - General Motors used aggressive repurchases to shrink its share count and reinforce management’s confidence in its outlook.
- Southwest Airlines leaned on buybacks to boost per-share value even as the airline navigated a choppy operating backdrop.
- Tapestry paired strong brand momentum (led by Coach) with heavy repurchases to amplify shareholder returns.
Share buybacks are one of the primary ways companies return capital to shareholders. Buybacks reduce a company's outstanding share count, so each remaining share represents a larger percentage of the company's value. All else equal, that puts upward pressure on share prices. They are also often a signal of management confidence. When a company buys back shares, it is effectively investing in itself, which can indicate management believes the stock is undervalued. Buyback yield is a useful metric for understanding the scale of a company's repurchases. It shows how much a company spent on buybacks over the last 12 months (LTM), relative to its market capitalization. Buyback yield is calculated like this: (LTM Buybacks – LTM Share Issuance) / Market Capitalization This metric allows investors to compare buyback activity across companies of different sizes. Below, we detail three S&P 500 stocks that ended 2025 with LTM buyback yields above 10%, among the highest in the index. This analysis includes repurchases made in Q4 2024, as most companies have yet to report Q4 2025. GM Makes Smart Use of Buybacks as Shares Gain More Than 50% First up is U.S. automobile stock General Motors (NYSE: GM). The company's LTM buyback spending was $8.2 billion, and it issued no shares. With a year-end 2025 market capitalization of $76.2 billion, GM's LTM buyback yield comes in at 10.8%. Notably, $4.7 billion of the firm's buyback spending occurred in Q4 2024. Overall, the stock rose nearly 53% in 2025, meaning GM repurchased a significant number of shares at substantially lower prices. The company's Oct. 21 earnings report impressed investors as GM materially raised its full-year guidance. The stock jumped 15% that day and climbed another 22% since. The consensus price target of $75.76 implies about 6% downside versus the Jan. 2 close. However, targets updated in December average $85.50, suggesting roughly 6% upside. Buybacks Boost LUV Even as Market Cap Growth Stagnates Southwest Airlines (NYSE: LUV) was another buyback-yield standout. The company's LTM buyback spending was $2.75 billion and it issued only $60 million worth of shares. With a year-end 2025 market capitalization of $21.4 billion, Southwest's LTM buyback yield stands at 12.6%. Southwest's buyback spending peaked in Q2 2025, when it spent $1.5 billion. The company acted opportunistically in April amid broad selloffs tied to tariff concerns, when LUV traded around $24. Since then, the stock is up nearly 75%. Notably, Southwest's market capitalization rose just 6% in 2025, while the stock itself increased 23%—a clear example of how buybacks can boost per-share returns by reducing the share count. The consensus price target of $39.44 implies about 4% downside versus the Jan. 2 close. However, price-target updates in December average $42.73, implying roughly 3% upside. TPR Nearly Doubles in 2025, Spends Almost $3B on Buybacks Last is consumer discretionary stock Tapestry (NYSE: TPR), owner of the Coach brand. Tapestry had an excellent 2025, with shares rising 96%. Tapestry also repurchased shares aggressively over the last 12 months. The company spent $2.8 billion on buybacks while issuing about $184 million worth of shares. With a year-end market capitalization of $26.1 billion, Tapestry's LTM buyback yield was almost exactly 10%. The firm repurchased $2 billion of shares in Q4 2024, effectively investing in itself at an attractive time. The consensus price target of $122 implies about 6% downside versus the Jan. 2 close. Targets updated after the company's Nov. 6 earnings average nearly $137, suggesting about 6% upside. Buybacks: An Important Tool if Used Appropriately Southwest is a good illustration of how buybacks can lift per-share returns. But markets don't automatically reward repurchases. If investors believe buybacks are crowding out critical investments—like fleet upgrades, technology, or long-term product development—sentiment can sour quickly. Buybacks funded with excessive debt can amplify those concerns. The bottom line: buyback yield is a powerful starting point, but it's most useful when considered alongside business quality, balance-sheet discipline, and credible reinvestment in the core franchise.
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