With buybacks and dividends under fire, Goldman proposes a new way for companies to return capital

(This story is for CNBC Pro subscribers only).

Economic and political forces are threatening the typical programs of dividends and buybacks used by companies, so Goldman Sachs suggested in a new note that maybe now is the time to try a new approach.

The economic slowdown caused by the coronavirus pandemic has led to major companies cutting and suspending their dividends, with Goldman projecting a 25% decline for S&P 500 dividends this year, and the CARES Act restricts some companies from dividends and buybacks. 

Source: cnbc.com