NEW YORK, March 24, 2020 /PRNewswire/ -- S&P Dow Jones
Indices ("S&P DJI") announced today that preliminary Q4
2019 S&P 500® stock buybacks, or
share repurchases, were $181.6
billion – a 3.2% increase over Q3 2019's $175.9 billion, but down 18.6% from Q4 2018's
$223.0 billion record.
Historical data on S&P 500 buybacks are available at
www.spdji.com/indices/equity/sp-500.
Key Takeaways:
- Companies posted their second consecutive quarter of increased
buyback expenditures after two quarters of declines from the record
Q4 2018 expenditures. For the quarter, S&P 500 companies spent
$181.6 billion on buybacks, up 3.2%
from their Q3 2019 $175.9 billion
mark, but down 18.6% from last year's record Q4 2018 expenditure of
$223.0 billion.
- For the full year 2019, companies spent $728.7 billion, down 9.6% from the record 2018
$806.4 billion ($519.4 billion in 2017), and ranking second
highest in index history. The cumulative rolling four quarters of
repurchases continued to impact EPS, as 20.8% of the issues reduced
share counts by at least 4% year-over-year, down from Q3 2019's
22.8%, but up from the 18.7% of Q4 2018.
- S&P 500 Q4 2019 dividends set a quarterly record,
increasing to $126.4 billion, up 5.5%
from Q4 2018's $119.8 billion; for
2019, dividends set a record with $485.5
billion, up 6.4% from the prior record, set in 2018, at
$456.3 billion.
- Total shareholder return of buybacks and dividends for the
quarter came in at $307.9 billion, up
3.0% from the Q3 2019 period expenditure of $299.0 billion and down 10.2% from the record
$342.8 billion reported for Q4 2018.
- Total shareholder return for 2019 declined to $1.214 trillion from 2018's record $1.263 trillion.
- Buybacks continued to be top heavy, with the top 20 issues
accounting for 55% of the expenditures, up from last quarter's
50.4% and the largest since the 59.8% in Q1 2010. The ten-year
average is 44.9%.
"After lowering expenditures in the first half of 2019 from
their tax-inspired record-setting buying spree of 2018, companies
increased their share repurchases in Q3 by 6.3% and in Q4 by 3.2%,"
said Howard Silverblatt, Senior
Index Analyst at S&P Dow Jones Indices. "While the
levels are still shy of the 2018 record, they are significantly
higher than the pre-2018 levels, and continued to surpass the hoped
for $170 billion mark, which was seen
as the level needed to support stocks and continue reduced share
count EPS growth."
2020 Outlook:
"COVID-19 has significantly changed the 2020 landscape, as
dividends are under pressure and buybacks appear to be gasping for
air," said Silverblatt, who pointed out that buybacks must now
compete with other corporate priorities as uncertainty over
liquidity is at its highest since the 2008 financial crisis. For
2020:
- Buybacks appear to have moved to the backburner for most
issues as companies appear to have reordered their short-term
priorities:
-
- Controlling liquidity.
- Maintaining business operations and retaining employees.
- Uncertainty over the length of virus and depth of the economic
impact.
- Pre-COVID-19 estimates predicted 2020 buybacks would come close
to or exceed the $806 billion record
set in 2018. Today:
-
- Q1,'20 buybacks are expected to be down significantly.
- Q2,'20 is expected to be dismal, with corporate participation
light.
- For 2020, buybacks may see a complete reversal of the 2018
buyback bonanza.
- Once the market believes we have hit bottom, buybacks may be
slow to come back as companies set their catch-up priorities and
may stringently control expenditures amidst:
-
- Potential restrictions on buybacks through government
programs.
- Public image of buybacks when the economy is still
recovering.
Q4 2019 GICS® Sector Analysis:
Information Technology buybacks reversed its prior two
quarters of expenditure declines, spending $52.4 billion for the quarter, up 6.5% from the
prior quarters $47.8 billion, but
down 14.5% from the Q4 2018 $61.3
billion level. On a percentage basis, the sector
represented 28.9% of all buybacks, up from the prior quarters
28.0%. For the year, the group spent $224.8
billion, representing 30.9% of the buybacks, down 19.3% from
the 2018 $278.5 billion expenditure,
which represented 34.5% of the buybacks.
Financials remained right behind Information Technology
as they increased expenditures 5.1% to $50.2
billion, up from last quarter's $47.8
billion, representing 27.6% of all buybacks, up from 27.2%
in Q3 2019. For the year, the group spent $178.7 billion, representing 24.5% of all
buybacks, up 19.1% from their 2018 expenditure of $150.1 billion, which represented 18.6% of the
buybacks.
Health Care buybacks increased 25.2% to $20.0 billion from last quarter's 16.0 billion,
as the full year declined 22.8% to $83.9
billion from $108.7 billion in
2018.
Issues:
The five issues with the highest total buybacks for Q4 2019
are:
- Apple (AAPL) continued to lead, spending $22.1 billion in Q4 2019, ranking 3rd
in S&P 500 history, as the level was up 25.2% from their Q3
2019 $17.6 billion expenditure and
over double the Q4 2018 $10.1
billion. For the year, Apple has spent $81.7 billion on buybacks, up from 2018's
$74.2 billion. Over the five-year
period, they have spent $264.3
billion and $342.0 billion
over the ten-year period.
- Bank of America (BAC): $7.7
billion for Q4 2019, up from $7.6
billion for Q3 2019; in 2019 they spent $28.1 billion, up from $20.1 billion in 2018.
- Oracle (ORCL): $5.0
billion for Q4 2019, down from $5.5
billion in Q3 2019; 2019 was $26.9
billion down from $29.3
billion in 2018.
- Wells Fargo (WFC):
$7.4 billion for Q4 2019, down from
their $7.5 billion Q3 2019
expenditure; 2019 was $24.8 billion,
up from $21.0 billion for
2018.
- JP Morgan (JPM): $6.8
billion for Q4 2019, down from the $6.9 billion spent in Q3 2019; 2019 was
$24.0 billion, up from $20.0 billion for 2018.
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 and
estimates in bold)
|
|
|
|
|
PERIOD
|
MARKET
|
OPERATING
|
AS
REPORTED
|
|
|
|
|
DIVIDEND
&
|
|
VALUE
|
EARNINGS
|
EARNINGS
|
DIVIDENDS
|
BUYBACKS
|
DIVIDEND
|
BUYBACK
|
BUYBACK
|
|
$
BILLIONS
|
$
BILLIONS
|
$
BILLIONS
|
$
BILLIONS
|
$
BILLIONS
|
YIELD
|
YIELD
|
YIELD
|
2019
|
$26,759.69
|
$1,304.59
|
$1,158.72
|
$485.48
|
$728.74
|
1.81%
|
2.72%
|
4.54%
|
2018
|
$21,026.90
|
$1,281.66
|
$1,119.43
|
$456.31
|
$806.41
|
2.17%
|
3.84%
|
6.01%
|
2017
|
$22,821.24
|
$1,066.00
|
$940.86
|
$419.77
|
$519.40
|
1.84%
|
2.28%
|
4.12%
|
2016
|
$19,267.93
|
$919.85
|
$818.55
|
$397.21
|
$536.38
|
2.06%
|
2.78%
|
4.85%
|
2015
|
$17,899.56
|
$885.38
|
$762.74
|
$382.32
|
$572.16
|
2.14%
|
3.20%
|
5.33%
|
|
|
|
|
|
|
|
|
|
12/31/2019
|
$26,760
|
$324.35
|
$294.78
|
$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%
|
3/29/2018
|
$22,496
|
$311.26
|
$281.28
|
$109.18
|
$189.05
|
1.90%
|
2.56%
|
4.46%
|
12/29/2017
|
$22,821
|
$288.93
|
$230.12
|
$109.46
|
$136.97
|
1.84%
|
2.28%
|
4.12%
|
9/29/2017
|
$21,579
|
$268.35
|
$243.68
|
$105.45
|
$129.17
|
1.92%
|
2.40%
|
4.32%
|
6/30/2017
|
$20,762
|
$261.39
|
$231.40
|
$104.01
|
$120.11
|
1.96%
|
2.41%
|
4.37%
|
3/31/2017
|
$20,276
|
$247.32
|
$235.65
|
$100.86
|
$133.15
|
1.98%
|
2.51%
|
4.49%
|
12/31/2016
|
$19,268
|
$240.11
|
$207.93
|
$103.82
|
$135.29
|
2.06%
|
2.78%
|
4.85%
|
9/30/2016
|
$18,742
|
$247.98
|
$219.46
|
$98.43
|
$112.20
|
2.10%
|
2.92%
|
5.01%
|
6/30/2016
|
$18,193
|
$222.77
|
$201.79
|
$98.30
|
$127.50
|
2.14%
|
3.22%
|
5.36%
|
3/31/2016
|
$17,958
|
$208.99
|
$189.37
|
$96.67
|
$161.39
|
2.15%
|
3.28%
|
5.43%
|
S&P Dow Jones
Indices
|
|
|
|
|
|
|
|
|
|
S&P 500 SECTOR
BUYBACKS
|
|
|
|
|
|
|
|
|
|
SECTOR $
MILLIONS
|
Q4,'19
|
Q3,'19
|
Q4,'18
|
12MoDec,'19
|
12MoDec,'18
|
5-YEARS
|
10-YEARS
|
Q4,'18
|
Q2,'09
|
|
|
|
|
|
|
|
|
(high)
|
(recent
low)
|
Consumer
Discretionary
|
$16,620
|
$18,372
|
$25,652
|
$68,476
|
$86,674
|
$420,287
|
$754,092
|
$25,652
|
$2,350
|
Consumer
Staples
|
$9,429
|
$7,509
|
$9,588
|
$33,838
|
$33,449
|
$206,448
|
$440,320
|
$9,588
|
$4,013
|
Energy
|
$5,025
|
$4,880
|
$8,698
|
$18,750
|
$30,427
|
$82,926
|
$266,702
|
$8,698
|
$5,343
|
Financials
|
$50,232
|
$47,789
|
$45,641
|
$178,685
|
$150,054
|
$652,120
|
$906,749
|
$45,641
|
$1,170
|
Healthcare
|
$20,041
|
$16,007
|
$31,336
|
$83,864
|
$108,692
|
$415,445
|
$711,672
|
$31,336
|
$4,699
|
Industrials
|
$10,218
|
$14,181
|
$23,026
|
$60,792
|
$78,239
|
$348,870
|
$563,488
|
$23,026
|
$1,681
|
Information
Technology
|
$52,432
|
$49,241
|
$61,298
|
$224,847
|
$278,526
|
$892,006
|
$1,410,197
|
$61,298
|
$4,757
|
Materials
|
$3,117
|
$5,400
|
$5,857
|
$15,709
|
$14,391
|
$59,874
|
$116,194
|
$5,857
|
$159
|
Real
Estate
|
$573
|
$694
|
$1,480
|
$2,230
|
$3,768
|
$10,601
|
$10,601
|
$1,480
|
|
Communication
Services
|
$13,687
|
$11,028
|
$9,556
|
$38,192
|
$20,237
|
$65,665
|
$96,656
|
$9,556
|
$13
|
Utilities
|
$211
|
$784
|
$850
|
$3,355
|
$1,952
|
$8,843
|
$18,082
|
$850
|
$10
|
TOTAL
|
$181,583
|
$175,886
|
$222,980
|
$728,738
|
$806,408
|
$3,163,084
|
$5,294,754
|
$222,980
|
$24,195
|
|
|
|
|
|
|
|
|
|
|
SECTOR BUYBACK
MAKEUP %
|
Q4,'19
|
Q3,'19
|
Q4,'18
|
12MoDec,'19
|
12MoDec,'18
|
5-YEARS
|
10-YEARS
|
Q4,'18
|
Q2,'09
|
Consumer
Discretionary
|
9.15%
|
10.45%
|
11.50%
|
9.40%
|
10.75%
|
13.29%
|
14.24%
|
11.50%
|
9.71%
|
Consumer
Staples
|
5.19%
|
4.27%
|
4.30%
|
4.64%
|
4.15%
|
6.53%
|
8.32%
|
4.30%
|
16.59%
|
Energy
|
2.77%
|
2.77%
|
3.90%
|
2.57%
|
3.77%
|
2.62%
|
5.04%
|
3.90%
|
22.08%
|
Financials
|
27.66%
|
27.17%
|
20.47%
|
24.52%
|
18.61%
|
20.62%
|
17.13%
|
20.47%
|
4.84%
|
Healthcare
|
11.04%
|
9.10%
|
14.05%
|
11.51%
|
13.48%
|
13.13%
|
13.44%
|
14.05%
|
19.42%
|
Industrials
|
5.63%
|
8.06%
|
10.33%
|
8.34%
|
9.70%
|
11.03%
|
10.64%
|
10.33%
|
6.95%
|
Information
Technology
|
28.88%
|
28.00%
|
27.49%
|
30.85%
|
34.54%
|
28.20%
|
26.63%
|
27.49%
|
19.66%
|
Materials
|
1.72%
|
3.07%
|
2.63%
|
2.16%
|
1.78%
|
1.89%
|
2.19%
|
2.63%
|
0.66%
|
Real
Estate
|
0.32%
|
0.39%
|
0.66%
|
0.31%
|
0.47%
|
0.34%
|
0.20%
|
0.66%
|
0.00%
|
Telecommunication
Services
|
7.54%
|
6.27%
|
4.29%
|
5.24%
|
2.51%
|
2.08%
|
1.83%
|
4.29%
|
0.05%
|
Utilities
|
0.12%
|
0.45%
|
0.38%
|
0.46%
|
0.24%
|
0.28%
|
0.34%
|
0.38%
|
0.04%
|
TOTAL
|
100.00%
|
100.00%
|
100.00%
|
100.00%
|
100.00%
|
100.00%
|
100.00%
|
100.00%
|
100.00%
|
S&P Dow Jones
Indices
|
|
|
|
|
|
|
|
|
S&P 500 20
LARGEST Q4 2019 BUYBACKS, $ MILLIONS
|
|
|
|
|
|
|
Company
|
Ticker
|
Sector
|
Q4
2019
|
12-Months
|
12-Months
|
5-Year
|
10-Year
|
Indicated
|
|
|
|
Buybacks
|
Dec,'19
|
Dec,'18
|
Buybacks
|
Buybacks
|
Dividend
|
|
|
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
Apple
|
AAPL
|
Information
Technology
|
$22,085
|
$81,685
|
$74,246
|
$264,340
|
$342,031
|
$14,559
|
Bank of
America
|
BAC
|
Financials
|
$7,748
|
$28,144
|
$20,094
|
$68,538
|
$73,433
|
$7,196
|
Wells
Fargo
|
WFC
|
Financials
|
$7,386
|
$24,835
|
$20,964
|
$73,407
|
$94,602
|
$9,481
|
Bristol-Myers
Squibb
|
BMY
|
Health
Care
|
$7,000
|
$7,300
|
$320
|
$10,320
|
$14,958
|
$4,220
|
JPMorgan
|
JPM
|
Financials
|
$6,751
|
$24,001
|
$19,983
|
$74,092
|
$97,156
|
$11,291
|
Alphabet
|
GOOGL
|
Communication
Services
|
$6,098
|
$18,396
|
$9,075
|
$37,790
|
$38,708
|
$0
|
Microsoft
|
MSFT
|
Information
Technology
|
$5,206
|
$19,504
|
$16,300
|
$77,549
|
$117,704
|
$15,563
|
Citigroup
|
C
|
Financials
|
$5,127
|
$17,982
|
$10,327
|
$58,741
|
$63,012
|
$4,454
|
Oracle
|
ORCL
|
Information
Technology
|
$5,036
|
$26,857
|
$29,306
|
$77,431
|
$109,871
|
$4,775
|
Intel
|
INTC
|
Information
Technology
|
$3,523
|
$13,623
|
$10,730
|
$34,418
|
$69,168
|
$5,742
|
Procter &
Gamble
|
PG
|
Consumer
Staples
|
$3,504
|
$9,504
|
$4,754
|
$25,719
|
$56,097
|
$7,432
|
Home Depot
|
HD
|
Consumer
Discretionary
|
$3,056
|
$6,965
|
$9,963
|
$38,808
|
$64,416
|
$6,545
|
Visa
|
V
|
Information
Technology
|
$2,517
|
$8,741
|
$7,914
|
$34,852
|
$48,690
|
$2,054
|
Charter
Communications
|
CHTR
|
Communication
Services
|
$2,305
|
$6,873
|
$4,399
|
$24,587
|
$25,371
|
$0
|
U.S.
Bancorp
|
USB
|
Financials
|
$2,293
|
$4,525
|
$2,822
|
$14,724
|
$21,576
|
$2,883
|
Goldman Sachs
Group
|
GS
|
Financials
|
$2,166
|
$6,080
|
$4,412
|
$30,828
|
$57,343
|
$1,967
|
Biogen
|
BIIB
|
Health
Care
|
$2,093
|
$5,868
|
$4,353
|
$17,586
|
$22,434
|
$0
|
Berkshire
Hathaway
|
BRK.B
|
Financials
|
$2,043
|
$4,850
|
$1,346
|
$6,196
|
$6,263
|
$0
|
AT&T
|
T
|
Communication
Services
|
$2,008
|
$2,417
|
$609
|
$4,270
|
$31,667
|
$15,194
|
Facebook
|
FB
|
Communication
Services
|
$1,923
|
$6,539
|
$16,087
|
$27,854
|
$31,679
|
$0
|
Top
20
|
|
|
$99,868
|
$324,689
|
$268,004
|
$1,002,050
|
$1,386,179
|
$113,356
|
S&P
500
|
|
|
$181,583
|
$728,738
|
$806,408
|
$3,163,084
|
$5,294,754
|
$553,760
|
Top 20 % of
S&P 500
|
|
|
55.00%
|
44.55%
|
33.23%
|
31.68%
|
26.18%
|
20.47%
|
Gross
values are not adjusted for float
|
|
|
|
|
|
|
S&P Dow Jones
Indices
|
|
|
|
S&P 500 20
Largest Quarterly Buybacks, $ Millions, as of Q4 2019; Apple added
at #3
|
|
$
MILLIONS
|
QUARTER
|
COMPANY
|
SECTOR
|
|
$23,811
|
Q1 2019
|
Apple
|
Information
Technology
|
1
|
$22,908
|
Q1 2018
|
Apple
|
Information
Technology
|
2
|
$22,085
|
Q4
2019
|
Apple
|
Information
Technology
|
3
|
$21,860
|
Q2 2018
|
Apple
|
Information
Technology
|
4
|
$21,162
|
Q2 2006
|
QUALCOMM
|
Information
Technology
|
5
|
$19,364
|
Q3 2018
|
Apple
|
Information
Technology
|
6
|
$18,154
|
Q2 2019
|
Apple
|
Information
Technology
|
7
|
$18,036
|
Q1 2014
|
Apple
|
Information
Technology
|
8
|
$17,635
|
Q3 2019
|
Apple
|
Information
Technology
|
9
|
$17,319
|
Q3 2014
|
Apple
|
Information
Technology
|
10
|
$16,413
|
Q2 2013
|
Apple
|
Information
Technology
|
11
|
$15,707
|
Q3 2007
|
International
Business Machines
|
Information
Technology
|
12
|
$13,420
|
Q3 2015
|
Apple
|
Information
Technology
|
13
|
$12,852
|
Q4 2013
|
Johnson &
Johnson
|
Healthcare
|
14
|
$12,318
|
Q4 2016
|
Allergan plc
(AGN)
|
Healthcare
|
15
|
$12,183
|
Q2 2012
|
Johnson &
Johnson
|
Healthcare
|
16
|
$11,480
|
Q4 2016
|
Apple
|
Information
Technology
|
17
|
$11,133
|
Q4 2017
|
Apple
|
Information
Technology
|
18
|
$10,776
|
Q2 2016
|
Apple
|
Information
Technology
|
19
|
$10,724
|
Q2 2015
|
Apple
|
Information
Technology
|
20
|
S&P Dow Jones
Indices
|
|
|
|
|
S&P 500 Q4
2019 Buyback Report
|
|
|
|
|
|
|
|
|
SECTOR
|
DIVIDEND
|
BUYBACK
|
COMBINED
|
|
|
YIELD
|
YIELD
|
YIELD
|
|
Consumer
Discretionary
|
2.01%
|
3.21%
|
5.22%
|
|
Consumer
Staples
|
4.03%
|
1.95%
|
5.98%
|
|
Energy
|
7.36%
|
3.07%
|
10.43%
|
|
Financials
|
3.22%
|
6.90%
|
10.11%
|
|
HealthCare
|
2.02%
|
2.50%
|
4.52%
|
|
Industrials
|
2.68%
|
3.26%
|
5.95%
|
|
Information
Technology
|
1.53%
|
3.95%
|
5.49%
|
|
Materials
|
3.02%
|
2.97%
|
5.99%
|
|
Real
Estate
|
3.60%
|
0.31%
|
3.91%
|
|
Communications
Services
|
1.77%
|
1.88%
|
3.65%
|
|
Utilities
|
3.63%
|
0.43%
|
4.05%
|
|
S&P
500
|
2.51%
|
3.30%
|
5.81%
|
|
Uses
full values (unadjusted for float)
|
|
|
|
Dividends based on indicated; buybacks based on the last 12-months
ending Q4,'19
|
Share Count
Changes
|
|
|
(Y/Y diluted
shares used for EPS)
|
>=4%
|
<=-4%
|
Q4
2019
|
7.68%
|
20.81%
|
Q3
2019
|
8.62%
|
22.85%
|
Q2
2019
|
7.98%
|
24.15%
|
Q1
2019
|
8.03%
|
24.90%
|
Q4
2018
|
8.45%
|
18.71%
|
Q3
2018
|
6.43%
|
17.67%
|
Q2
2018
|
6.20%
|
15.60%
|
Q1
2018
|
7.01%
|
13.63%
|
Q4
2017
|
6.83%
|
15.06%
|
Q3
2017
|
8.62%
|
14.23%
|
Q2
2017
|
10.00%
|
14.00%
|
Q1
2017
|
12.00%
|
14.80%
|
Q4
2016
|
10.48%
|
19.35%
|
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