NEW YORK, Sept. 18, 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 $120.1 billion for Q2 2017. This is a 9.8%
decrease from the $133.1 billion
reported for Q1 2017, a 5.8% decrease from the $127.5 billion reported for Q2 2016 and a
25.6% decrease from the $161.4
billion for Q1 2016, when companies were supporting
share prices in a declining market.
For the 12-month period ending June
2017, S&P 500 issues spent $500.8 billion on buybacks, down 14.5% from
the $585.4 billion set during the
12-month period ending June 2016.
Historical data on S&P 500 buybacks is available at:
www.spdji.com/indices/equity/sp-500.
Key Takeaways:
- The number of S&P 500 issues substantially reducing their
year-over-year share count, which is used to calculate EPS,
declined to 13.8% for Q2 2017, compared to 14.8% for Q1 2017 and
26.6% for Q2 2016.
- Total shareholder return totaled $224.1
billion, down 4.2% from $234.0
billion for Q1 2017.
- S&P 500 dividends set a new record payment, at $104.0 billion, up from $100.9 billion for Q1 2017; for the 12-month
period ending June 2017, the total
shareholder return was $907.9
billion, down 6.9% from $974.8
billion for the 12-month period ending June 2016.
- 268 S&P 500 issues reduced their share count for Q2 2017,
compared to 255 for Q1 2017 and 275 for Q2 2016.
- Year-over-year share count reductions of at least 4%, which are
seen as affecting EPS, declined to 66 issues for Q2 2017, compared
to 71 for Q1 2017 and 134 for Q2 2016.
"Share buyback expenditures for Q2 2017 declined, as share
prices increased, resulting in fewer share repurchases and a weaker
tailwind for EPS," said Howard
Silverblatt, Senior Index Analyst at S&P Dow Jones
Indices.
"The going rate for the last two years was that more than 20% of
S&P 500 issues provided at least a 4% tailwind to EPS via
reduced share counts. For 2017, that rate has dropped
significantly. The Street is interpreting the decline in
discretionary buybacks, which reduce share counts and increase EPS,
as a positive sign; while there is less support for EPS growth,
companies are showing an ability to meet their EPS targets without
the buyback tailwind, as their Q2 2017 record earnings show."
Buyback concentration declined for the quarter, as the top 20
issues accounted for 38.6% of all share repurchases, down from
42.1% for Q1 2017; it is the lowest recording for the top 20 since
37.6% for Q4 2015.
"The ability of companies to increase buybacks remains strong,
as available cash set a new record, surpassing $1.5 trillion for the first time," said
Silverblatt. "Net income improved, with Q2 2017 setting a record,
and current Q3 2017 estimates projecting additional gains."
GICS® Sector Analysis:
Energy buybacks increased the most, up 47.5% to
$3.1 billion, up from $2.1 billion for Q1 2017; expenditures still
significantly trailed the pre-June
2014 oil price fall, when the sector spent $13.1 billion for Q1 2014.
Financials, which exhibited strength during Q1 2017
with a 10.2% increase, posted a 9.1% decrease for Q2 2017 with
$26.8 billion, compared to
$29.5 billion for Q1 2017, accounting
for 22.3% of all buybacks. Of note, in June
2017 major banks received approval to increase their
shareholder returns, leading to potentially higher buybacks and
dividend expenditures.
Information Technology was steady, as expenditures rose
0.5% to $27.6 billion from the prior
period's $27.5 billion. The sector
represents 23.0% of all buybacks but has 46% of the index's cash
reserves.
Issues:
Apple (AAPL) spent $7.1
billion for Q2 2017, down from $7.2
billion for Q1 2017 and down from $10.2 billion for Q2 2016.
Charter Communications (CHTR) was second, with
$3.3 billion, up from $0.9 billion for Q1 2017 and $0.08 billion for Q2 2016.
J. P. Morgan (JPM) was third, with $3.0 billion, up from $2.8
billion for both Q1 2017 and Q2 2016.
Home Depot (HD) came in fourth, with $2.6 billion, up from $1.3
billion for Q1 2017.
Boeing (BA) rounded out the top five, at $2.5 billion, flat from Q1 2017.
Total Shareholder Return:
Silverblatt determined that total shareholder
return, through regular cash dividends and buybacks,
decreased 4.2% to $224.1
billion for Q2 2017, down from $234.0 billion for Q1 2017. For the 12-month
period ending June 2017, shareholder
return totaled $907.8 billion, down
6.9% from the record $974.8 billion
set during the 12-month period ending June
2016.
Dividends posted a 3.1% increase for Q2 2017, to a record
$104.0 billion, up from $100.9 billion for Q1 2017. Payments totaled
$407.1 billion for the 12-month
period ending June 2017, up 4.5% from
$389.3 billion for the 12-month
period ending June 2016. With Q3 2017
nearing its end, the quarter is expected to post another record for
cash dividend payments.
According to Silverblatt, preliminary cash reserves increased
from Q1 2017. S&P 500 Industrial (Old), which consists of
the S&P 500 less Financials, Transportations and Utilities,
available cash and equivalent surpassed $1.5
trillion for the first time, standing at $1.534 trillion. Available cash stood at
$1.496 trillion for Q1 2017. The
current cash level is 1.6 times greater than expected 2018
operating income.
"The key question remaining is whether companies will aid EPS
through discretionary buybacks or through old-fashioned earnings
growth," said Silverblatt.
"Income tax reform and potential cash repatriation are other key
factors to watch, as new legislation could lead to a potential
increase of shareholder returns."
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
&
|
DIVIDENDS
|
|
VALUE
|
EARNINGS
|
EARNINGS
|
DIVIDENDS
|
BUYBACKS
|
DIVIDEND
|
BUYBACK
|
BUYBACK
|
&
BUYBACKS
|
|
$
BILLIONS
|
$
BILLIONS
|
$
BILLIONS
|
$
BILLIONS
|
$
BILLIONS
|
YIELD
|
YIELD
|
YIELD
|
$
BILLION
|
12 Months Jun
2017
|
$20,762
|
$996.81
|
$894.36
|
$407.11
|
$500.75
|
1.96%
|
2.41%
|
4.37%
|
$907.87
|
12 Months Jun
2016
|
$18,193
|
$857.84
|
$759.50
|
$389.43
|
$585.35
|
2.14%
|
3.22%
|
5.36%
|
$974.78
|
2016
|
$19,268
|
$919.85
|
$818.55
|
$397.21
|
$536.38
|
2.06%
|
2.78%
|
4.85%
|
$933.60
|
2015
|
$17,900
|
$885.38
|
$762.74
|
$382.32
|
$572.16
|
2.14%
|
3.20%
|
5.33%
|
$954.47
|
2014
|
$18,245
|
$1,004.22
|
$909.09
|
$350.43
|
$553.28
|
1.92%
|
3.03%
|
4.95%
|
$903.71
|
|
|
|
|
|
|
|
|
|
|
6/30/2017
Preliminary
|
$20,762
|
$261.39
|
$231.32
|
$104.01
|
$120.11
|
1.96%
|
2.41%
|
4.37%
|
$224.12
|
3/31/2017
|
$20,276
|
$247.32
|
$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
|
S&P Dow Jones
Indices
|
|
|
|
|
|
|
S&P 500 SECTOR
BUYBACKS
|
|
|
|
|
|
|
SECTOR $
MILLIONS
|
Q2,'17
|
Q1,'17
|
Q2,'16
|
12MO
JUN','17
|
12MO
JUN,'16
|
5-YEARS
|
|
|
|
|
|
|
|
Consumer
Discretionary
|
$22,357
|
$16,196
|
$20,283
|
$81,126
|
$97,195
|
$402,527
|
Consumer
Staples
|
$10,296
|
$14,469
|
$11,720
|
$44,776
|
$49,706
|
$223,775
|
Energy
|
$3,107
|
$2,107
|
$1,386
|
$7,538
|
$9,604
|
$123,038
|
Financials
|
$26,815
|
$29,497
|
$25,666
|
$108,297
|
$103,127
|
$416,479
|
Healthcare
|
$12,636
|
$27,010
|
$14,974
|
$81,633
|
$76,892
|
$352,978
|
Industrials
|
$14,799
|
$14,113
|
$21,897
|
$56,952
|
$90,943
|
$325,270
|
Information
Technology
|
$27,628
|
$27,477
|
$30,066
|
$109,815
|
$143,425
|
$641,819
|
Materials
|
$1,020
|
$1,359
|
$1,269
|
$7,104
|
$12,400
|
$66,398
|
Real
Estate
|
$1,150
|
$574
|
|
$2,483
|
$0
|
$2,483
|
Telecommunication
Services
|
$282
|
$191
|
$201
|
$789
|
$1,084
|
$32,505
|
Utilities
|
$20
|
$158
|
$38
|
$243
|
$974
|
$6,258
|
TOTAL
|
$120,109
|
$133,150
|
$127,501
|
$500,754
|
$585,350
|
$2,593,531
|
S&P Dow Jones
Indices
|
S&P 500 20
LARGEST Q2 2017 BUYBACKS, $ MILLIONS
|
Company
|
Ticker
|
Sector
|
Q2,'17
|
12MO
Jun,'17
|
12MO
Jun.'16
|
5-Year
|
10-year
|
Indicated
|
|
|
|
Buybacks
|
Buybacks
|
Buybacks
|
Buybacks
|
Buybacks
|
Dividend
|
|
|
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
Apple
|
AAPL
|
Information
Technology
|
$7,093
|
$31,131
|
$36,949
|
$157,940
|
$90,992
|
$13,139
|
Charter
Communications
|
CHTR
|
Consumer
Discretionary
|
$3,328
|
$5,686
|
$114
|
$5,864
|
-$15,573
|
$0
|
JPMorgan
|
JPM
|
Financials
|
$3,007
|
$10,385
|
$7,003
|
$30,086
|
$58,379
|
$7,958
|
Home Depot
|
HD
|
Consumer
Discretionary
|
$2,632
|
$8,360
|
$6,356
|
$34,701
|
$50,303
|
$4,256
|
Boeing
|
BA
|
Industrials
|
$2,500
|
$6,500
|
$7,751
|
$26,554
|
$17,546
|
$3,428
|
Walt
Disney
|
DIS
|
Consumer
Discretionary
|
$2,444
|
$7,535
|
$9,180
|
$31,125
|
$27,548
|
$2,467
|
American Internat'l
Gr
|
AIG
|
Financials
|
$2,415
|
$11,212
|
$13,196
|
$41,650
|
$50,418
|
$1,185
|
Wells
Fargo
|
WFC
|
Financials
|
$2,296
|
$8,703
|
$8,827
|
$38,703
|
$57,975
|
$7,796
|
Wal-Mart
Stores
|
WMT
|
Consumer
Staples
|
$2,262
|
$7,893
|
$7,681
|
$27,498
|
-$46,050
|
$6,150
|
Bank of
America
|
BAC
|
Financials
|
$2,236
|
$7,693
|
$3,982
|
$17,345
|
$34,367
|
$4,777
|
Johnson &
Johnson
|
JNJ
|
Healthcare
|
$1,890
|
$9,460
|
$6,947
|
$30,241
|
$40,482
|
$9,051
|
Citigroup
|
C
|
Financials
|
$1,781
|
$10,696
|
$6,553
|
$22,555
|
$14,875
|
$3,524
|
Microsoft
|
MSFT
|
Information
Technology
|
$1,765
|
$11,788
|
$15,969
|
$54,876
|
$114,003
|
$12,044
|
Visa
|
V
|
Information
Technology
|
$1,708
|
$6,933
|
$5,562
|
$25,317
|
$40,721
|
$1,219
|
Alphabet
|
GOOGL
|
Information
Technology
|
$1,618
|
$2,745
|
$5,473
|
$8,218
|
-$42,412
|
$0
|
Intel
|
INTC
|
Information
Technology
|
$1,610
|
$3,982
|
$3,588
|
$25,175
|
-$8,427
|
$5,133
|
Internat'l Bus
Machines
|
IBM
|
Information
Technology
|
$1,529
|
$4,599
|
$4,193
|
$38,217
|
$92,256
|
$5,637
|
Comcast
|
CMCSA
|
Consumer
Discretionary
|
$1,480
|
$5,091
|
$5,801
|
$22,228
|
-$28,219
|
$2,982
|
Goldman Sachs
Group
|
GS
|
Financials
|
$1,466
|
$5,753
|
$5,934
|
$27,600
|
$50,484
|
$1,181
|
Cisco
Systems
|
CSCO
|
Information
Technology
|
$1,291
|
$4,304
|
$4,466
|
$26,542
|
$71,971
|
$5,800
|
Top
20
|
|
|
$46,351
|
$170,449
|
$165,525
|
$692,435
|
$671,639
|
$97,726
|
S&P
500
|
|
|
$120,109
|
$500,754
|
$585,351
|
$2,593,531
|
$4,284,417
|
$439,791
|
Top 20 % of
S&P 500
|
|
|
38.59%
|
34.04%
|
28.28%
|
26.70%
|
15.68%
|
22.22%
|
Gross
values are not adjusted for float
|
|
|
|
|
|
|
S&P Dow Jones
Indices
|
S&P 500 20
Largest Quarterly Buybacks, $ Millions, as of Q2 2017, no issue was
added for Q2 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
|
|
|
$7,093
|
Q2
2017
|
Apple
|
Information
Technology
|
32
|
S&P Dow Jones
Indices
|
S&P 500 Q2
2017 Buyback Report
|
|
|
|
|
SECTOR
|
DIVIDEND
|
BUYBACK
|
COMBINED
|
|
YIELD
|
YIELD
|
YIELD
|
Consumer
Discretionary
|
1.56%
|
3.22%
|
4.77%
|
Consumer
Staples
|
3.12%
|
2.51%
|
5.63%
|
Energy
|
3.08%
|
0.61%
|
3.68%
|
Financials
|
2.02%
|
3.73%
|
5.74%
|
HealthCare
|
1.61%
|
2.66%
|
4.27%
|
Industrials
|
2.20%
|
2.70%
|
4.90%
|
Information
Technology
|
1.48%
|
2.38%
|
3.85%
|
Materials
|
2.22%
|
1.01%
|
3.23%
|
Real
Estate
|
3.32%
|
0.44%
|
3.76%
|
Telecommunication
Services
|
5.29%
|
0.18%
|
5.47%
|
Utilities
|
3.34%
|
0.03%
|
3.38%
|
S&P
500
|
2.12%
|
2.43%
|
4.54%
|
Uses
full values (unadjusted for float)
|
|
|
Dividends based on indicated; buybacks based on the last 12-months
ending Q2,'17
|
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View original
content:http://www.prnewswire.com/news-releases/q2-2017-sp-500-buybacks-fall-98-from-q1-to-1201-billion-300520823.html
SOURCE S&P Dow Jones Indices