S&P 500 Buybacks Decline 21.8% as Financials Pull Back; 12-Months Buybacks Pass $1 Trillion for the First Time

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

AAPL

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

MSFT

Information Technology

$8,757

$8,822

$7,177

$32,696

$27,385

$113,313

$168,189

$0

Meta Platforms

META

Communication Services

$6,235

$10,431

$8,434

$53,268

$19,224

$102,529

$108,233

$7,812

Lowe's

LOW

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
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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