NEW YORK, Sept. 20, 2022 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") announced today preliminary S&P 500® stock buybacks, or share repurchases, data for Q2 2022.
Historical data on S&P 500 buybacks are available at www.spdji.com/indices/equity/sp-500.Key Takeaways:
"Companies pulled back from their Q1 record-breaking buyback expenditures, with 11.5% fewer companies participating, as they spent 21.8% less. There were significant reductions in Financials and Health Care issues, as Energy issues have reentered the buyback market, and are again buying," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "The steep decline in prices, however, led to more shares repurchased, as 21.3% of the companies in the S&P 500 increased their earnings-per-share by at least 4% thanks to their newly lowered share counts, up from the 17.6% in Q1 2022, and 5.4% in Q2 2021."Outlook for Q3 2022:
Silverblatt added, "For Q3, we see slightly higher buybacks expenditures, with Q4 potentially seeing some 2023 purchases accelerated into 2022 to avoid the new tax, which may result in another record year. With interest rates rising, consumers pulling back, and supply and labor issues impacting production, companies appear concerned about their forward earnings, and are more cautious about their expenditures."1% Buyback Excise Tax for 2023:
On a proforma basis, the new 1% excise tax on the net buybacks would have reduced 2021 S&P 500 operating earnings by 0.48%, as reported GAAP earnings by 0.50%, GAAP free-cash-flow by 0.44%, and increased the 2021 S&P 500 17.56% effective tax rate to 17.96%. Silverblatt commented that "going from zero to anything is the biggest increase, so while the 1% tax is an additional cost, it is not significant enough to impact buybacks. However, we expect to see some buybacks planned for 2023 moved into Q4 2022." Silverblatt added that "the buyback tax had bipartisan support, so there is a good possibility that the 1% level is only the opening move, which if increased enough could impact dividends as well."Q2 2022 GICS® Sector Analysis:
Information Technology continued to lead in buybacks, as its percentage of buybacks increased. In Q2 2022, IT's share increased to 32.8% of all S&P 500 buybacks compared to Q1 2022's 25.5% and Q2 2021's 31.6%, as expenditures increased (0.5%) to $72.0 billion from the prior quarter's $71.6 billion and were 14.7% higher than the Q2 2021 expenditure of $62.8 billion. For the 12-months ending June 2022, the sector spent $284.5 billion, representing 28.3% of all S&P buybacks, up from 2021's 12-month $224.9 billion, which represented 36.9% of all buybacks. For the 10-years, the sector spent $1.814 trillion, representing 28.8% of the expenditures.
Financials significantly cut back on buybacks, decreasing their expenditures 61.2% to $21.2 billion, representing 9.7% of the buybacks, from the Q1 2022 $54.7 billion, which represented 19.5% of all buybacks. The 12-month buybacks of $189.3 billion were 84.1% higher than the 12-month June 2021 buybacks of $102.9 billion, when the Fed partially limited buybacks.
Health Care buybacks decreased 58.2%, spending $17.2 billion in Q2 2022, representing 7.8% of all buybacks, down from the Q1 2022 $41.1 billion, which accounted for 14.6% of the buybacks, and were 3.1% lower than the Q2 2021 expenditure of $17.8 billion.
Energy reentered the buyback market, as they increased their expenditures by 56.5% for the quarter, to $13.4 billion, from the prior quarter's $8.6 billion and were up 729% from the Q2 2021 $1.6 billion. For the 12-months, buybacks were $32.5 billion compared to the prior period's $2.5 billion, a 1,200% increase.Issues:
The five issues with the highest total buybacks for Q2 2022 are:
For more information about S&P Dow Jones Indices, please visit www.spdji.com.
S&P Dow Jones Indices
S&P 500, $ U.S. BILLIONS
(preliminary in bold)
PERIOD
MARKET
OPERATING
AS REPORTED
DIVIDEND &
VALUE
EARNINGS
EARNINGS
DIVIDENDS
BUYBACKS
DIVIDEND
BUYBACK
BUYBACK
$ BILLIONS
$ BILLIONS
$ BILLIONS
$ BILLIONS
$ BILLIONS
YIELD
YIELD
YIELD
12 Mo Jun,'22
$31,903
$1,733.78
$1,626.00
$542.09
$1,005.39
1.70 %
3.15 %
4.85 %
12 Mo Jun,'21
$36,325
$1,477.02
$1,336.15
$484.45
$609.35
1.33 %
1.68 %
3.01 %
2021
$40,356
$1,738.62
$1,652.78
$511.23
$881.72
1.27 %
2.18 %
3.45 %
2020
$31,659
$1,019.04
$784.21
$483.18
$519.76
1.53 %
1.64 %
3.17 %
2019
$26,760
$1,304.76
$1,158.22
$485.48
$728.74
1.81 %
2.72 %
4.54 %
2018
$21,027
$1,281.66
$1,119.43
$456.31
$806.41
2.17 %
3.84 %
6.01 %
6/30/2022
$31,903
$395.02
$359.96
$140.56
$219.64
1.70 %
3.15 %
4.85 %
3/31/2022
$38,288
$417.33
$388.42
$137.60
$281.01
1.37 %
2.57 %
3.94 %
12/31/2022
$40,356
$456.22
$434.29
$133.90
$270.10
1.27 %
2.18 %
3.45 %
9/30/2021
$36,538
$441.26
$420.64
$130.04
$234.64
1.37 %
2.03 %
3.40 %
6/30/2021
$36,325
$439.95
$409.02
$123.38
$198.84
1.33 %
1.68 %
3.01 %
3/31/2021
$33,619
$401.19
$388.84
$123.91
$178.13
1.43 %
1.48 %
2.91 %
12/31/2020
$31,659
$321.81
$265.00
$121.62
$130.59
1.53 %
1.64 %
3.17 %
9/30/2020
$27,868
$314.06
$273.29
$115.54
$101.79
1.75 %
2.05 %
3.80 %
6/30/2020
$25,637
$221.53
$147.44
$119.04
$88.66
1.93 %
2.52 %
4.45 %
3/31/2020
$21,424
$161.64
$98.48
$126.98
$198.72
2.31 %
3.37 %
5.68 %
12/31/2019
$26,760
$324.52
$294.29
$126.35
$181.58
1.81 %
2.72 %
4.54 %
9/30/2019
$24,707
$330.42
$282.12
$123.12
$175.89
1.94 %
3.12 %
5.06 %
6/28/2019
$24,423
$333.26
$290.00
$118.68
$165.46
1.93 %
3.27 %
5.20 %
3/29/2019
$23,619
$316.56
$291.82
$117.33
$205.81
1.97 %
3.49 %
5.45 %
12/31/2018
$21,027
$293.82
$242.91
$119.81
$222.98
2.17 %
3.84 %
6.01 %
9/30/2018
$24,579
$349.04
$306.70
$115.72
$203.76
1.81 %
2.93 %
4.75 %
6/30/2018
$23,036
$327.53
$288.55
$111.60
$190.62
1.89 %
2.80 %
4.69 %
S&P Dow Jones Indices
S&P 500 SECTOR BUYBACKS
SECTOR $ MILLIONS
Q2,'22
Q1,'22
Q2,'21
12MoJun,'22
12MoJun,'21
5-YEARS
10-YEARS
Consumer Discretionary
$27,639
$28,238
$19,193
$107,319
$47,222
$372,113
$774,640
Consumer Staples
$10,662
$8,419
$8,912
$40,234
$31,494
$171,874
$395,649
Energy
$13,383
$8,552
$1,615
$32,523
$2,502
$95,646
$218,684
Financials
$21,216
$54,690
$41,777
$189,347
$102,868
$744,092
$1,160,571
Healthcare
$17,201
$41,134
$17,754
$96,345
$60,717
$406,466
$759,444
Industrials
$17,834
$24,745
$14,894
$76,414
$39,116
$301,762
$627,032
Information Technology
$71,956
$71,580
$62,758
$284,462
$224,930
$1,172,546
$1,814,365
Materials
$8,726
$7,434
$4,624
$30,657
$12,067
$81,037
$147,435
Real Estate
$1,127
$1,131
$42
$3,175
$1,606
$14,423
$16,906
Communication Services
$29,441
$34,069
$27,268
$142,045
$82,946
$330,981
$363,487
Utilities
$453
$1,017
$7
$2,869
$3,887
$12,472
$18,730
TOTAL
$219,637
$281,011
$198,843
$1,005,390
$609,355
$3,703,413
$6,296,944
SECTOR BUYBACK MAKEUP %
Q2,'22
Q1,'22
Q2,'21
12MoJun,'22
12MoJun,'21
5-YEARS
10-YEARS
Consumer Discretionary
12.58 %
10.05 %
9.65 %
10.67 %
7.75 %
10.05 %
12.30 %
Consumer Staples
4.85 %
3.00 %
4.48 %
4.00 %
5.17 %
4.64 %
6.28 %
Energy
6.09 %
3.04 %
0.81 %
3.23 %
0.41 %
2.58 %
3.47 %
Financials
9.66 %
19.46 %
21.01 %
18.83 %
16.88 %
20.09 %
18.43 %
Healthcare
7.83 %
14.64 %
8.93 %
9.58 %
9.96 %
10.98 %
12.06 %
Industrials
8.12 %
8.81 %
7.49 %
7.60 %
6.42 %
8.15 %
9.96 %
Information Technology
32.76 %
25.47 %
31.56 %
28.29 %
36.91 %
31.66 %
28.81 %
Materials
3.97 %
2.65 %
2.33 %
3.05 %
1.98 %
2.19 %
2.34 %
Real Estate
0.51 %
0.40 %
0.02 %
0.32 %
0.26 %
0.39 %
0.27 %
Communication Services
13.40 %
12.12 %
13.71 %
14.13 %
13.61 %
8.94 %
5.77 %
Utilities
0.21 %
0.36 %
0.00 %
0.29 %
0.64 %
0.34 %
0.30 %
TOTAL
100.00 %
100.00 %
100.00 %
100.00 %
100.00 %
100.00 %
100.00 %
S&P 500 20 LARGEST Q2 2022 BUYBACKS, $ MILLIONS
Company
Ticker
Sector
Q2 2022
Q1 2021
Q2 20221
12-Months
12-Months
5-Year
10-Year
Indicated
Buybacks
Buybacks
Buybacks
Jun,'22
Jun,'21
Buybacks
Buybacks
Dividend
$ Million
$ Million
$ Million
$ Million
$ Million
$ Million
$ Million
$ Million
Apple
Information Technology
$24,562
$22,961
$25,595
$91,338
$89,665
$392,410
$557,386
$15,198
Alphabet
GOOGL
Communication Services
$15,197
$13,300
$12,796
$54,580
$39,992
$139,492
$147,710
$0
Microsoft
Information Technology
$8,757
$8,822
$7,177
$32,696
$27,385
$113,313
$168,189
$0
Meta Platforms
Communication Services
$6,235
$10,431
$8,434
$53,268
$19,224
$102,529
$108,233
$7,812
Lowe's
Consumer Discretionary
$4,091
$4,037
$3,136
$14,966
$10,179
$34,150
$53,388
$18,620
Exxon Mobil
XOM
Energy
$3,919
$2,067
$0
$6,140
$101
$7,999
$53,063
$5,931
Charter Communications
CHTR
Communication Services
$3,687
$3,333
$3,516
$15,283
$14,878
$52,432
$58,296
$3,987
NVIDIA
NVDA
Information Technology
$3,650
$2,528
$366
$7,239
$1,367
$12,759
$17,010
$0
Walmart
WMT
Consumer Staples
$3,339
$2,408
$2,391
$10,334
$7,102
$35,135
$62,633
$6,411
Amazon.com
AMZN
Consumer Discretionary
$3,334
$2,666
$0
$6,000
$0
$6,000
$6,000
$8,421
Comcast
CMCSA
Communication Services
$3,065
$3,223
$648
$10,003
$1,222
$20,277
$42,606
$0
Morgan Stanley
MS
Financials
$2,837
$3,681
$3,018
$12,993
$5,680
$34,586
$45,186
$8,021
HCA Healthcare
HCA
Health Care
$2,682
$2,101
$2,287
$9,184
$3,814
$17,085
$25,449
$2,516
Target
TGT
Consumer Discretionary
$2,640
$181
$1,540
$7,327
$2,889
$15,100
$25,110
$2,216
KLA
KLAC
Information Technology
$2,589
$581
$313
$4,052
$995
$7,287
$8,766
$2,313
UnitedHealth Group
UNH
Health Care
$2,500
$2,500
$1,250
$7,100
$5,459
$24,705
$36,683
$551
Cisco Systems
CSCO
Information Technology
$2,488
$377
$998
$8,381
$3,513
$55,109
$81,651
$6,751
Visa
V
Information Technology
$2,434
$2,952
$2,202
$12,572
$7,395
$44,425
$69,742
$1,645
Mastercard Incorporated
MA
Information Technology
$2,384
$2,540
$1,715
$7,769
$6,291
$29,125
$44,802
$6,280
ConocoPhillips
COP
Energy
$2,300
$1,425
$606
$6,367
$1,149
$16,666
$18,035
$4,794
Top 20
$102,690
$92,114
$77,988
$377,592
$248,300
$1,160,584
$1,629,938
$101,465
S&P 500
$219,637
$281,011
$198,843
$1,005,390
$609,355
$3,703,413
$6,296,944
$557,225
Top 20 % of S&P 500
46.75 %
32.78 %
39.22 %
37.56 %
40.75 %
31.34 %
25.88 %
18.21 %
Gross values are not adjusted for float
S&P Dow Jones Indices
S&P 500 Q2 2022 Buyback Report
SECTOR
DIVIDEND
BUYBACK
COMBINED
YIELD
YIELD
YIELD
Consumer Discretionary
0.84 %
2.67 %
3.51 %
Consumer Staples
2.61 %
1.78 %
4.39 %
Energy
3.50 %
2.05 %
5.55 %
Financials
2.14 %
4.99 %
7.13 %
HealthCare
1.64 %
1.94 %
3.58 %
Industrials
1.72 %
2.81 %
4.53 %
Information Technology
1.00 %
3.03 %
4.03 %
Materials
2.11 %
3.47 %
5.58 %
Real Estate
2.95 %
0.32 %
3.27 %
Communications Services
1.20 %
6.31 %
7.51 %
Utilities
2.75 %
0.26 %
3.01 %
S&P 500
1.64 %
2.96 %
4.60 %
Uses full values (unadjusted for float)
Dividends based on indicated; buybacks based on the last 12-months ending Q2,'22
Share Count Changes
(Y/Y diluted shares used for EPS)
>=4%
<=-4%
Q2 2022
8.03 %
21.29 %
Q1 2022
7.62 %
17.64 %
Q4 2021
10.06 %
14.89 %
Q3 2021
10.22 %
7.41 %
Q2 2021
11.02 %
5.41 %
Q1 2021
10.40 %
5.80 %
Q4 2020
9.02 %
6.01 %
Q3 2020
8.62 %
9.62 %
Q2 2020
8.60 %
17.80 %
Q1 2020
8.00 %
19.60 %
Q4 2019
7.63 %
20.68 %
Q3 2019
8.62 %
22.85 %
Q2 2019
7.98 %
24.15 %ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P Dow Jones Indices has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
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S&P Dow Jones Indices Media Contacts:
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(+1) 917 796 3121
april.kabahar@spglobal.com
Lauren Davis
(+1) 484 269 7118
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Senior Index Analyst
(+1) 973 769 2306
howard.silverblatt@spglobal.com
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SOURCE S&P Dow Jones Indices