NEW YORK, June 21, 2017 /PRNewswire/ -- S&P Dow Jones
Indices ("S&P DJI") today announced preliminary results
indicating that S&P 500® stock
buybacks, or share repurchases, totaled $133.1 billion for Q1 2017. This is a 1.6%
decrease from the $135.3 billion
reported for Q4 2016 and a 17.5% decrease from the $161.4 billion reported for Q1 2016, when
companies actively supported declining share prices.
For the 12-month period ending March
2017, S&P 500 issues spent $508.1 billion on buybacks, down 13.8% from
$589.4 billion for the prior 12-month
period; the 12-month period ending March
2016 remains the all-time record.
Historical data on S&P 500 buybacks is available at:
www.spdji.com/indices/equity/sp-500.
Key Takeaways:
- Fewer buybacks resulted in fewer share count reductions and
less earnings per share (EPS) support.
- S&P 500 issues substantially reducing their year-over-year
share count, which is used to calculate EPS, declined to 14.8%,
compared to 19.4% for Q1 2017 and 28.2% for Q1 2016.
- Total shareholder return totaled $234.0
billion, down 2.1% from $239.1
billion for Q4 2016.
- S&P 500 dividends slightly declined to $100.9 billion, from $103.8 billion for Q4 2016; for the 12-month
period ending March 2017, the total
shareholder return was $909.6
billion, down 6.7% from $975.0
billion for the 12-month period ending March 2016.
- 255 S&P 500 issues reduced their share count for Q1 2017,
down from 281 for Q4 2016 and 324 for Q1 2016.
- Year-over-year share count reductions of at least 4%, which are
seen as affecting EPS, declined to 71 issues for Q1 2017, compared
to 93 for Q4 2016 and 139 for Q1 2016.
"The expenditures on share buybacks declined as share prices
increased, resulting in fewer share repurchases and an impact to
EPS growth," said Howard
Silverblatt, Senior Index Analyst at S&P Dow Jones
Indices.
"Over the past two years, more than 20% of S&P 500 issues
have given at least a 4% tailwind for EPS via reduced share counts;
for Q1 2017, that rate dropped to 14.8%, with indications that Q2
2017 may offer even less support. Companies may have to increase
EPS the old-fashioned way – by earning it."
Buybacks remained concentrated, as the top 20 issues accounted
for 42.1% of all share repurchases, down from 46.7% for Q4
2016.
"The ability of companies to increase buybacks remains high, as
available cash set a new record," said Silverblatt. "Net income has
improved, with Q2 2017 estimates projecting additional gains,
potentially setting a new record. On an issue level, the question
now is where share counts end up and the overall amount of EPS
support."
Sector Analysis:
Financials increased its expenditures by 10.2%, to
$29.5 billion, the most of any
sector. Financials accounted for 22.2% of all buybacks. Of
note, the upcoming bank stress test results may indicate potential
future actions.
Health Care expenditures declined 6.5% to $27.0 billion, from $28.9
billion, as it accounted for 20.3% of all buybacks (down
from 21.4% for Q4 2016).
Information Technology continued strong, even as its
expenditures declined 4.4% to $27.5
billion from the prior period's $28.7
billion; the sector represents 20.6% of all buybacks.
Energy buybacks more than doubled to $2.1 billion for Q1 2017, from $1.0 billion for Q4 2016, but still pales against
the $13.1 billion spent for Q1 2014
when oil prices were higher.
Issues:
Apple (AAPL) spent $7.2
billion for Q1 2017, down from $10.9
billion for Q4 2016 but up from $6.7
billion for Q1 2016.
Pfizer (PFE) was second, with $5.0
billion, as it matched its Q1 2016 expenditure after no
buybacks between Q2-Q4 2016.
CVS Health (CVS) was third, with $3.6 billion, up from $0.4
billion for Q4 2016 and $2.1
billion for Q1 2016.
American International Group (AIG) came in fourth, with
$3.6 billion, up from $3.0 billion for Q4 2016.
Johnson & Johnson (JNJ) rounded out the top 5, at
$3.3 billion, up from $2.0 billion for Q4 2016.
Exxon Mobil (XOM) ranked 68, up from 111 last quarter
(and 291 for Q3 2016), as it increased its expenditures to
$501 million from last quarter's
$250 million and $1 million for both Q2 2016 and Q3 2016.
Total Shareholder Return:
Silverblatt determined that total shareholder
return through regular cash dividends and buybacks decreased
2.1% to $234.0 billion for Q1
2017, down from $239.1 billion for Q4
2016. For the 12-month period ending March
2017, shareholder return totaled $909.6 billion, down 6.7% from the record
$975.0 billion for the 12-month
period ending March 2016.
Dividends posted a 2.8% decline for Q1 2017, to $100.9 billion, from the Q4 2016 record of
$103.8 billion. Payments totaled
$401.4 billion for the 12-month
period ending March 2017, up 4.1%
from $385.6 billion for the 12-month
period ending March 2016. With Q2
2017 nearing its end, the quarter could post a record.
According to Silverblatt, preliminary cash reserves ticked up
from Q4 2016. S&P 500 Industrial (Old), which consists
of the S&P 500 less Financials, Transportations and Utilities,
available cash and equivalent now stands at $1.496 trillion, surpassing the previous record
of $1.487 trillion from Q3 2016. The
current cash level is 1.7 times greater than expected 2017
operating income.
"Companies' ability to increase their expenditure, be it
buybacks, dividends capital expenditures or M&A, remains very
high, given their cash reserves and cash flow," said Silverblatt.
"Additionally, while dividend growth has slowed, Q2 2017 and
full-year 2017 may post quarterly and annual records,
respectively."
"Base buyback expenditures must increase if companies wish to
negate stock options, as higher stock prices can be costly and
bring in additional out-of-the-money options."
"Discretionary buybacks, which are typically used to reduce
share count and increase EPS, continued to decline, indicating that
companies may feel they can compensate via higher earnings; if not,
they have the choice to quickly increase their buybacks."
For more information about S&P Dow Jones Indices, please
visit www.spdji.com.
S&P Dow Jones
Indices
|
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|
|
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S&P 500, $
U.S. BILLIONS
|
(preliminary in
bold)
|
|
|
|
|
|
|
PERIOD
|
MARKET
OPERATING AS REPORTED
|
|
|
|
|
DIVIDEND
&
|
DIVIDENDS
|
|
VALUE
|
EARNINGS
|
EARNINGS
|
DIVIDENDS
|
BUYBACKS
|
DIVIDEND
|
BUYBACK
|
BUYBACK
|
&
BUYBACKS
|
|
$
BILLIONS
|
$
BILLIONS
|
$
BILLIONS
|
$
BILLIONS
|
$
BILLIONS
|
YIELD
|
YIELD
|
YIELD
|
$
BILLION
|
12 Months Mar
2017
|
$20,275.97
|
$958.10
|
$864.83
|
$401.41
|
$508.15
|
1.98%
|
2.51%
|
4.49%
|
$909.56
|
12 Months Mar
2016
|
$17,958.30
|
$865.92
|
$759.06
|
$385.57
|
$589.41
|
2.15%
|
3.28%
|
5.43%
|
$974.99
|
2016
|
$19,267.93
|
$919.85
|
$818.55
|
$397.21
|
$536.38
|
2.06%
|
2.78%
|
4.85%
|
$933.60
|
2015
|
$17,899.56
|
$885.38
|
$762.74
|
$382.32
|
$572.16
|
2.14%
|
3.20%
|
5.33%
|
$954.47
|
2014
|
$18,245.16
|
$1,004.22
|
$909.09
|
$350.43
|
$553.28
|
1.92%
|
3.03%
|
4.95%
|
$903.71
|
|
|
|
|
|
|
|
|
|
|
3/31/2017
|
$20,276
|
$247.24
|
$235.65
|
$100.86
|
$133.15
|
1.98%
|
2.51%
|
4.49%
|
$234.01
|
12/31/2016
|
$19,268
|
$240.11
|
$207.93
|
$103.82
|
$135.29
|
2.06%
|
2.78%
|
4.85%
|
$239.11
|
9/30/2016
|
$18,742
|
$247.98
|
$219.46
|
$98.43
|
$112.20
|
2.10%
|
2.92%
|
5.01%
|
$210.63
|
6/30/2016
|
$18,193
|
$222.77
|
$201.79
|
$98.30
|
$127.50
|
2.14%
|
3.22%
|
5.36%
|
$225.81
|
3/31/2016
|
$17,958
|
$208.99
|
$189.37
|
$96.67
|
$161.39
|
2.15%
|
3.28%
|
5.43%
|
$258.05
|
12/31/2015
|
$17,900
|
$201.95
|
$163.76
|
$99.39
|
$145.88
|
2.14%
|
3.20%
|
5.33%
|
$245.27
|
9/30/2015
|
$16,917
|
$224.14
|
$204.58
|
$95.07
|
$150.58
|
2.22%
|
3.30%
|
5.52%
|
$245.66
|
6/30/2015
|
$18,219
|
$230.84
|
$201.35
|
$94.45
|
$131.56
|
2.03%
|
3.04%
|
5.07%
|
$226.01
|
3/31/2015
|
$18,303
|
$228.45
|
$193.05
|
$93.41
|
$144.13
|
1.98%
|
2.94%
|
4.92%
|
$237.54
|
12/30/2014
|
$18,245
|
$237.14
|
$202.31
|
$92.80
|
$132.63
|
1.92%
|
3.03%
|
4.95%
|
$225.43
|
9/30/2014
|
$17,519
|
$262.92
|
$244.00
|
$89.02
|
$145.19
|
1.96%
|
3.14%
|
5.10%
|
$234.22
|
6/30/2014
|
$17,404
|
$260.50
|
$240.96
|
$86.65
|
$116.17
|
1.91%
|
3.06%
|
4.98%
|
$202.82
|
3/31/2014
|
$16,700
|
$243.67
|
$221.82
|
$81.96
|
$159.28
|
1.93%
|
3.20%
|
5.14%
|
$241.24
|
12/31/2013
|
$16,495
|
$252.10
|
$236.31
|
$84.98
|
$129.41
|
1.89%
|
2.88%
|
4.77%
|
$214.40
|
9/30/2013
|
$14,960
|
$239.50
|
$219.13
|
$79.26
|
$128.16
|
2.05%
|
2.98%
|
5.03%
|
$207.42
|
6/30/2013
|
$14,310
|
$234.84
|
$221.56
|
$76.67
|
$118.05
|
2.07%
|
2.94%
|
5.02%
|
$194.72
|
3/31/2013
|
$13,979
|
$229.57
|
$215.76
|
$70.86
|
$99.97
|
2.06%
|
2.97%
|
5.02%
|
$170.82
|
12/31/2012
|
$12,742
|
$206.84
|
$184.50
|
$79.83
|
$99.15
|
2.20%
|
3.13%
|
5.33%
|
$178.98
|
9/30/2012
|
$12,881
|
$214.58
|
$189.64
|
$69.48
|
$103.72
|
2.07%
|
3.01%
|
5.08%
|
$173.20
|
6/30/2012
|
$12,303
|
$229.69
|
$195.27
|
$67.31
|
$111.75
|
2.08%
|
3.27%
|
5.35%
|
$179.05
|
3/31/2012
|
$12,730
|
$219.09
|
$208.15
|
$64.07
|
$84.29
|
1.95%
|
3.14%
|
5.09%
|
$148.37
|
S&P Dow Jones
Indices
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S&P 500 SECTOR
BUYBACKS
|
|
|
|
|
|
|
SECTOR $
MILLIONS
|
Q1,'17
|
Q4,'16
|
Q1,'16
|
12MO
MAR,'17
|
12MO
MAR,'16
|
5-YEARS
|
|
|
|
|
|
|
|
Consumer
Discretionary
|
$16,196
|
$20,604
|
$26,671
|
$79,053
|
$99,480
|
$397,441
|
Consumer
Staples
|
$14,469
|
$11,615
|
$11,708
|
$46,200
|
$45,725
|
$223,617
|
Energy
|
$2,107
|
$979
|
$2,053
|
$5,816
|
$11,765
|
$130,584
|
Financials
|
$29,497
|
$26,772
|
$26,706
|
$107,148
|
$98,737
|
$405,830
|
Healthcare
|
$27,010
|
$28,898
|
$30,626
|
$83,971
|
$80,049
|
$364,174
|
Industrials
|
$14,113
|
$14,773
|
$26,229
|
$64,050
|
$86,218
|
$318,036
|
Information
Technology
|
$27,477
|
$28,731
|
$34,682
|
$112,253
|
$150,033
|
$635,707
|
Materials
|
$1,359
|
$2,497
|
$2,402
|
$7,353
|
$13,526
|
$66,528
|
Real
Estate
|
$574
|
$303
|
|
$1,333
|
$0
|
$1,333
|
Telecommunication
Services
|
$191
|
$69
|
$12
|
$708
|
$1,049
|
$34,790
|
Utilities
|
$158
|
$51
|
$296
|
$262
|
$2,830
|
$7,129
|
TOTAL
|
$133,150
|
$135,292
|
$161,385
|
$508,146
|
$589,411
|
$2,585,168
|
S&P Dow Jones
Indices
|
|
|
|
|
|
|
|
|
S&P 500 20
LARGEST Q1 2017 BUYBACKS, $ MILLIONS
|
|
|
|
|
|
|
Company
|
Ticker
|
Sector
|
Q1,'17
|
12MO
Mar,'17
|
12MO
Mar.'16
|
5-Year
|
10-year
|
Indicated
|
|
|
|
Buybacks
|
Buybacks
|
Buybacks
|
Buybacks
|
Buybacks
|
Dividend
|
|
|
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
Apple
|
AAPL
|
Information
Technology
|
$7,161
|
$34,204
|
$36,783
|
$150,847
|
$150,847
|
$13,221
|
Pfizer
|
PFE
|
Healthcare
|
$5,000
|
$5,000
|
$5,160
|
$42,696
|
$57,272
|
$7,618
|
CVS
Health
|
CVS
|
Consumer
Staples
|
$3,621
|
$6,016
|
$5,060
|
$23,380
|
$36,113
|
$2,051
|
American Internat'l
Gr
|
AIG
|
Financials
|
$3,585
|
$11,559
|
$12,779
|
$41,235
|
$48,305
|
$1,185
|
Johnson &
Johnson
|
JNJ
|
Healthcare
|
$3,342
|
$9,939
|
$5,559
|
$41,210
|
$58,449
|
$9,117
|
Aetna Inc.
(AET)
|
AET
|
Healthcare
|
$3,300
|
$3,300
|
$100
|
$7,302
|
$15,046
|
$663
|
JPMorgan
|
JPM
|
Financials
|
$2,832
|
$10,218
|
$5,412
|
$28,516
|
$44,826
|
$7,144
|
Bank of
America
|
BAC
|
Financials
|
$2,728
|
$6,840
|
$3,374
|
$15,109
|
$16,411
|
$3,008
|
Wells
Fargo
|
WFC
|
Financials
|
$2,534
|
$8,621
|
$8,602
|
$38,439
|
$48,640
|
$7,605
|
Boeing
)
|
BA
|
Industrials
|
$2,500
|
$6,000
|
$7,752
|
$24,054
|
$29,456
|
$3,479
|
Citigroup
|
C
|
Financials
|
$2,255
|
$10,241
|
$6,784
|
$20,778
|
$22,550
|
$1,773
|
Wal-Mart
Stores
|
WMT
|
Consumer
Staples
|
$2,185
|
$7,748
|
$6,567
|
$25,236
|
$60,099
|
$6,269
|
Microsoft
|
MSFT
|
Information
Technology
|
$2,062
|
$13,700
|
$16,571
|
$54,141
|
$110,067
|
$12,055
|
Walt
Disney
|
DIS
|
Consumer
Discretionary
|
$2,035
|
$6,608
|
$8,698
|
$29,054
|
$46,643
|
$2,467
|
Procter &
Gamble
|
PG
|
Consumer
Staples
|
$2,001
|
$5,233
|
$3,504
|
$23,982
|
$58,464
|
$7,052
|
Intuitive
Surgical
|
ISRG
|
Healthcare
|
$2,000
|
$2,034
|
$182
|
$4,574
|
$5,254
|
$0
|
Bristol-Myers
Squibb
|
BMY
|
Healthcare
|
$2,000
|
$2,000
|
$231
|
$4,733
|
$6,869
|
$2,609
|
Visa
|
V
|
Information
Technology
|
$1,582
|
$6,934
|
$4,907
|
$24,070
|
$43,261
|
$1,226
|
General
Electric
|
GE
|
Industrials
|
$1,578
|
$16,681
|
$8,060
|
$40,642
|
$63,330
|
$8,376
|
Humana
|
HUM
|
Healthcare
|
$1,574
|
$1,607
|
$391
|
$3,850
|
$4,826
|
$239
|
Top
20
|
|
|
$55,875
|
$174,483
|
$146,476
|
$643,848
|
$926,728
|
$97,158
|
S&P
500
|
|
|
$132,627
|
$508,146
|
$589,411
|
$2,585,168
|
$4,322,063
|
$431,794
|
Top 20 % of
S&P 500
|
|
|
42.13%
|
34.34%
|
24.85%
|
24.91%
|
21.44%
|
22.50%
|
Gross
values are not adjusted for float
|
|
|
|
|
|
|
S&P Dow Jones
Indices
|
|
|
|
S&P 500 20
Largest Quarterly Buybacks, $ Millions, as of Q1 2017, no isses
added for Q1 2017
|
|
$
MILLIONS
|
QUARTER
|
COMPANY
|
SECTOR
|
|
$17,971
|
Q1 2014
|
Apple
|
Information
Technology
|
1
|
$17,000
|
Q3 2014
|
Apple
|
Information
Technology
|
2
|
$16,000
|
Q2 2013
|
Apple
|
Information
Technology
|
3
|
$15,707
|
Q2 2007
|
International
Business Machines
|
Information
Technology
|
4
|
$13,253
|
Q3 2015
|
Apple
|
Information
Technology
|
5
|
$12,852
|
Q2 2012
|
Johnson &
Johnson
|
Healthcare
|
6
|
$12,318
|
Q4 2016
|
Allergan plc
(AGN)
|
Healthcare
|
7
|
$12,183
|
Q3 2012
|
Johnson &
Johnson
|
Healthcare
|
8
|
$10,851
|
Q4 2016
|
Apple
|
Information
Technology
|
9
|
$10,723
|
Q3 2007
|
Home Depot
|
Consumer
Discretionary
|
10
|
$10,166
|
Q2 2016
|
Apple
|
Information
Technology
|
11
|
$10,000
|
Q2 2015
|
Apple
|
Information
Technology
|
12
|
$9,859
|
Q4 2007
|
Transocean
|
Energy
|
13
|
$9,179
|
Q4 2006
|
Exxon
Mobil
|
Energy
|
14
|
$9,465
|
Q1 2008
|
Exxon
Mobil
|
Energy
|
15
|
$8,845
|
Q4 2008
|
Exxon
Mobil
|
Energy
|
16
|
$8,761
|
Q2 2008
|
Exxon
Mobil
|
Energy
|
17
|
$8,663
|
Q3 2008
|
Exxon
Mobil
|
Energy
|
18
|
$8,463
|
Q3 2007
|
Exxon
Mobil
|
Energy
|
19
|
$8,166
|
Q1 2014
|
International
Business Machines
|
Information
Technology
|
20
|
$230,425
|
|
TOP
20
|
|
|
S&P Dow Jones
Indices
|
|
|
|
|
S&P 500 Q1
2017 Buyback Report
|
|
|
|
|
|
|
|
|
SECTOR
|
DIVIDEND
|
BUYBACK
|
COMBINED
|
|
|
YIELD
|
YIELD
|
YIELD
|
|
Consumer
Discretionary
|
1.55%
|
3.09%
|
4.64%
|
|
Consumer
Staples
|
3.01%
|
2.45%
|
5.46%
|
|
Energy
|
2.98%
|
0.48%
|
3.45%
|
|
Financials
|
1.77%
|
3.57%
|
5.33%
|
|
HealthCare
|
1.69%
|
2.85%
|
4.55%
|
|
Industrials
|
2.14%
|
3.00%
|
5.14%
|
|
Information
Technology
|
1.54%
|
2.54%
|
4.08%
|
|
Materials
|
2.10%
|
1.24%
|
3.35%
|
|
Real
Estate
|
3.47%
|
0.43%
|
3.91%
|
|
Telecommunication
Services
|
4.90%
|
0.15%
|
5.05%
|
|
Utilities
|
3.40%
|
0.04%
|
3.43%
|
|
S&P
500
|
2.10%
|
2.48%
|
4.57%
|
|
Uses
full values (unadjusted for float)
|
|
|
|
Dividends based on indicated; buybacks based on the last 12-months
ending Q1,'17
|
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for
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iconic financial market indicators, such as the S&P 500® and
the Dow Jones Industrial Average®. More assets are invested in
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SPGI), which provides essential intelligence for individuals,
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more information, visit www.spdji.com.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sp-500-buybacks-fall-175-year-over-year-to-1331-billion-for-q1-2017-300477504.html
SOURCE S&P Dow Jones Indices