NEW YORK, Sept. 15, 2020 /PRNewswire/
-- S&P Dow Jones Indices ("S&P DJI") announced
today that preliminary Q2 2020 S&P
500® stock buybacks, or share repurchases,
were $88.7 billion – a 55.4% decrease
from Q1 2020's $198.7 billion and
down 46.4% from Q2 2019's $165.5
billion.
Historical data on S&P 500 buybacks are available at
www.spdji.com/indices/equity/sp-500.
Key Takeaways:
- Companies posted a sharp decrease in buyback expenditures as
the full effect of the economic impact from COVID-19 was felt. For
the quarter, 49% of the S&P 500 companies did buybacks,
compared to 79% in Q1 2020.
- Q2 2020 buybacks were $88.7
billion, down 55.4% from $198.7
billion in Q1 2020 and down 46.4% from $165.5 billion in Q2 2019.
- For the 12-month June 2020
period, companies spent $644.9
billion, down 19.2% from their 12-month June 2019 expenditure of $798.0 billion. The record 12-month high is
$823.2 billion in March 2018.
- The cumulative rolling four quarters of repurchases continued
to impact EPS, but declined, as 18.0% of the issues reduced share
counts by at least 4% year-over-year, down from Q1 2019's 19.6% and
24.2% in Q2 2019; for Q3 2020 the rate is expected to decline
further.
- S&P 500 Q2 2020 dividends declined 6.25% to $119.0 billion, from the Q1 2020 record
$127.0 billion, and increasing 0.3%
from the Q2 2019 payment of $118.7
billion. For the 12-month period, dividends set a record, at
$495.5 billion, (the prior record was
Q1 2020, at $495.1 billion), up 5.1%
from the corresponding 2019 period's $471.5
billion.
- Total shareholder return of buybacks and dividends for the
quarter came in at $207.5 billion,
down 36.3% from the Q1 2020 period expenditure of $325.7 billion and down 26.9%% from the
$284.1 billion reported for Q2
2019.
- Total shareholder return for the 12-month June 2020 period declined to $1.140 trillion from June 2019's $1.270 trillion.
- The top 20 issues dominated the buybacks, accounting for 87.2%
of all buybacks, up from Q1 2020's 46.7% and the historical 44.5%
average.
"Companies pulled back on buybacks in Q2 2020 as the COVID-19
impact on sales, liquidity, and business lines displaced share
repurchases," said Howard
Silverblatt, Senior Index Analyst at S&P Dow Jones
Indices. "Q3 2020 expenditures are expected to be a tick
better as those who have strong cash-flow and active business lines
continue to buy and some recovering issues venture back-in, even if
just to cover employee options and protect EPS."
"Looking beyond Q3, Q4 2020 remains contingent on the economy,
which is contingent on the COVID-19 recovery," Silverblatt
continued. As businesses reopen and the economy picks up,
companies will need to address prior actions as well as initiate
new procedures and policies to function in the new environment,
including potential reorganization to address employee location
needs and shifts in customer base and cycles. These
expenditures could limit the discretionary buybacks they're able to
do."
Q2 2020 GICS® Sector Analysis:
Information Technology continued to lead in buybacks even
as S&P 500 expenditures declined 55.4% from the prior quarter.
The sector spent $39.6 billion for
the quarter, down 37.7% from the prior quarter's $59.1 billion, and down 33.1% from the Q2 2019
$55.2 billion level. On a
percentage basis, the sector increased its representation to 41.6%
of all buybacks, up from the prior quarter's 29.8%. For the
12-month June 2020 period, the group
spent $197.7 billion, representing
30.7% of the buybacks, down 25.9% from the corresponding 2019
period's $266.8 billion expenditure,
which represented 33.4% of the buybacks.
Financial buybacks, which were slightly trailing
Information Technology, declined 82.1%, to $8.3 billion from the Q1 2020 $46.6 billion expenditure, and absent Berkshire
Hathaway's $ 5.0 billion expenditure
was down 92.8%. Their Q2 2020 expenditure represented 9.4% of all
buybacks, down from 23.5% in Q1 2019. For the one-year period, the
group spent $153.0 billion,
representing 23.7% of all buybacks, down 8.4% from their 2019
expenditure of $166.9 billion, which
represented 20.9% of the buybacks. For Q3 2020, minimal
expenditures are expected, as big-banks have suspended their
buybacks for that period.
Communication Services was the only sector to
increase, up 37.7% over Q1 2020, thanks to T-Mobile's $17.1 billion expenditure (in connection with the
SoftBank Monetization, ranking #13 in index history); absent that,
the sector was down 47.9%. For Q2 2020 the sector spent
$27.5 billion, up from Q1 2020's 20.0
billion, as it represented 31.1% of the Q2 2020 buybacks.
Of sector Note: Energy declined 98.5% from Q1 2020,
Consumer Discretionary fell 91.8%, and Industrials were down
91.2%.
Issues:
The five issues with the highest total buybacks for Q2 2020
are:
- Apple (AAPL) continued to lead, spending $17.6 billion in Q2 2020, ranking 11th
in S&P 500 history, as the level was down 6.4% from their Q1
2020 $18.8 billion expenditure and
down 3.3% from their Q2 2019 $18.2
billion. For the 12-month period, Apple has spent
$76.0 billion on buybacks, up from
2019's $71.4 billion. Over the
five-year period, they have spent $282.9
billion and $378.1 billion
over the ten-year period.
- T-Mobile (TMUS): $17.2
billion for Q2 20120, up from $0.1
billion for Q1 2020; for the 12-months ending in
June 2020 they spent $17.3 billion versus $0.2
billion.
- Alphabet (GOOG/L): $6.9
billion for Q2 20120, down from $8.5
billion for Q1 2020; for the 12-months ending in
June 2020 they spent $27.1 billion versus $11.5
billion.
- Microsoft (MSFT): $5.8
billion for Q2 2020, down from $7.1
billion in Q1 2020; for the 12-months ending in June 2020 they spent $23.0
billion versus $19.5
billion.
- Regeneron Pharmaceuticals (REGN): $5.5 billion for Q2 2020, up from the
$0.5 billion spent in Q1 2020; for
the 12-months ending in June 2020
they spent $6.4 billion versus
$0.2 billion.
For more information about S&P Dow Jones Indices, please
visit www.spdji.com.
S&P Dow Jones
Indices
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S&P 500 Q2
2020 buyback and related data
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As of the close
of:
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9/11/2020
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S&P Dow Jones
Indices
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S&P 500, $
U.S. BILLIONS
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(preliminary and
estimates in bold)
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PERIOD
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MARKET
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OPERATING
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AS
REPORTED
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DIVIDEND
&
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VALUE
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EARNINGS
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EARNINGS
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DIVIDENDS
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BUYBACKS
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DIVIDEND
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BUYBACK
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BUYBACK
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$
BILLIONS
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$
BILLIONS
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$
BILLIONS
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$
BILLIONS
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$
BILLIONS
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YIELD
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YIELD
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YIELD
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12 Mo
Jun,'20
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$25,637
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$1,037.70
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$821.66
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$495.49
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$644.85
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1.93%
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2.52%
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4.45%
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12 Mo
Jun,19
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$24,423
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$1,292.68
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$1,131.42
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$471.54
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$798.01
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1.93%
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3.27%
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5.20%
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2019
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$26,760
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$1,304.76
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$1,158.22
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$485.48
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$728.74
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1.81%
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2.72%
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4.54%
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2018
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$21,027
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$1,281.66
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$1,119.43
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$456.31
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$806.41
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2.17%
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3.84%
|
6.01%
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2017
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$22,821
|
$1,066.00
|
$940.86
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$419.77
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$519.40
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1.84%
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2.28%
|
4.12%
|
2016
|
$19,268
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$919.85
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$818.55
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$397.21
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$536.38
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2.06%
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2.78%
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4.85%
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6/30/2020
Prelim.
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$25,637
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$221.12
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$146.78
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$119.04
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$88.66
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1.93%
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2.52%
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4.45%
|
3/31/2020
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$21,424
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$161.64
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$98.48
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$126.98
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$198.72
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2.31%
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3.37%
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5.68%
|
12/31/2019
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$26,760
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$324.52
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$294.29
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$126.35
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$181.58
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1.81%
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2.72%
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4.54%
|
9/30/2019
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$24,707
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$330.42
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$282.12
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$123.12
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$175.89
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1.94%
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3.12%
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5.06%
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6/28/2019
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$24,423
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$333.26
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$290.00
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$118.68
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$165.46
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1.93%
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3.27%
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5.20%
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3/29/2019
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$23,619
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$316.56
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$291.82
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$117.33
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$205.81
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1.97%
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3.49%
|
5.45%
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12/31/2018
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$21,027
|
$293.82
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$242.91
|
$119.81
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$222.98
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2.17%
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3.84%
|
6.01%
|
9/30/2018
|
$24,579
|
$349.04
|
$306.70
|
$115.72
|
$203.76
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1.81%
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2.93%
|
4.75%
|
6/30/2018
|
$23,036
|
$327.53
|
$288.55
|
$111.60
|
$190.62
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1.89%
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2.80%
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4.69%
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3/29/2018
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$22,496
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$311.26
|
$281.28
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$109.18
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$189.05
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1.90%
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2.56%
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4.46%
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12/29/2017
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$22,821
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$288.93
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$230.12
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$109.46
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$136.97
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1.84%
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2.28%
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4.12%
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9/29/2017
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$21,579
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$268.35
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$243.68
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$105.45
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$129.17
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1.92%
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2.40%
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4.32%
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6/30/2017
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$20,762
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$261.39
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$231.40
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$104.01
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$120.11
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1.96%
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2.41%
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4.37%
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3/31/2017
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$20,276
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$247.32
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$235.65
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$100.86
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$133.15
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1.98%
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2.51%
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4.49%
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12/31/2016
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$19,268
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$240.11
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$207.93
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$103.82
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$135.29
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2.06%
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2.78%
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4.85%
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9/30/2016
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$18,742
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$247.98
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$219.46
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$98.43
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$112.20
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2.10%
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2.92%
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5.01%
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6/30/2016
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$18,193
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$222.77
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$201.79
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$98.30
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$127.50
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2.14%
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3.22%
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5.36%
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S&P Dow Jones
Indices
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S&P 500 SECTOR
BUYBACKS
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SECTOR $
MILLIONS
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Q2,'20
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Q4,'19
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Q2,'19
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12MoJun,'20
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12MoJun,'19
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5-YEARS
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10-YEARS
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Q4,'18
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Q2,'09
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(high)
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(
low)
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Consumer
Discretionary
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$1,317
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$16,087
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$15,764
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$52,395
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$78,825
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$395,893
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$752,484
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$25,652
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$2,350
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Consumer
Staples
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$1,514
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$5,278
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$7,114
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$23,730
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$36,512
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$194,628
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$421,945
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$9,588
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$4,013
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Energy
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$60
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$3,861
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$4,552
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$13,826
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$24,874
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$77,762
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$264,511
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$8,698
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$5,343
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Financials
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$8,346
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$46,637
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$37,819
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$153,005
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$166,948
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$663,302
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$952,002
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$45,641
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$1,170
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Healthcare
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$10,706
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$20,807
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$17,066
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$67,562
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$93,633
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$407,930
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$719,061
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$31,336
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$4,699
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Industrials
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$1,816
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$20,736
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$16,967
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$46,951
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$74,578
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$334,127
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$577,257
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$23,026
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$1,681
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Information
Technology
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$36,900
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$59,138
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$55,187
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$197,712
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$266,764
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$916,393
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$1,468,868
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$61,298
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$4,757
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Materials
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$184
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$4,551
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$2,420
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$13,252
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$16,062
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$57,817
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$119,311
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$5,857
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$159
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Real
Estate
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$204
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$1,320
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$555
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$2,791
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$2,963
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$12,125
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$12,125
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$1,480
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Communication
Services
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$27,548
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$20,002
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$7,132
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$72,264
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$33,125
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$107,863
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$143,990
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$9,556
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$13
|
Utilities
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$67
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$303
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$882
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$1,365
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$3,720
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$6,933
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$17,683
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$850
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$10
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TOTAL
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$88,661
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$198,722
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$165,458
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$644,852
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$798,005
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$3,174,773
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$5,449,237
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$222,980
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$24,195
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S&P Dow Jones
Indices
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S&P 500 20
LARGEST Q2 2020 BUYBACKS, $ MILLIONS
|
Company
|
Ticker
|
Sector
|
Q2
2020
|
Q1
2020
|
Q2
2019
|
12-Months
|
12-Months
|
5-Year
|
10-Year
|
Indicated
|
|
|
|
Buybacks
|
Buybacks
|
Buybacks
|
Jun,'20
|
Jun,'19
|
Buybacks
|
Buybacks
|
Dividend
|
|
|
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
Apple
|
AAPL
|
Information
Technology
|
$17,559
|
$18,761
|
$18,154
|
$76,040
|
$71,443
|
$282,870
|
$378,070
|
$15,124
|
T-Mobile
US
|
TMUS
|
Communication
Services
|
$17,128
|
$141
|
$4
|
$17,321
|
$166
|
$19,414
|
$19,585
|
$0
|
Alphabet
|
GOOGL
|
Communication
Services
|
$6,852
|
$8,496
|
$3,577
|
$27,142
|
$11,452
|
$53,138
|
$53,255
|
$0
|
Microsoft
|
MSFT
|
Information
Technology
|
$5,791
|
$7,059
|
$4,633
|
$22,968
|
$19,543
|
$80,989
|
$124,692
|
$15,470
|
Regeneron
Pharmaceuticals
|
REGN
|
Health
Care
|
$5,469
|
$476
|
$30
|
$6,359
|
$210
|
$7,170
|
$7,857
|
$0
|
Oracle
|
ORCL
|
Information
Technology
|
$5,346
|
$4,004
|
$6,301
|
$19,905
|
$36,643
|
$82,774
|
$118,725
|
$4,587
|
Berkshire
Hathaway
|
BRKA
|
Financials
|
$4,998
|
$1,741
|
$548
|
$9,456
|
$3,479
|
$12,935
|
$13,002
|
$0
|
Biogen
|
BIIB
|
Health
Care
|
$2,809
|
$2,220
|
$2,402
|
$7,840
|
$4,410
|
$22,573
|
$25,853
|
$0
|
Facebook
|
FB
|
Communication
Services
|
$2,122
|
$1,940
|
$1,752
|
$7,724
|
$12,083
|
$31,916
|
$35,741
|
$0
|
Charter
Communications
|
CHTR
|
Communication
Services
|
$1,155
|
$2,352
|
$861
|
$8,579
|
$3,919
|
$28,071
|
$28,878
|
$0
|
BlackRock
|
BLK
|
Financials
|
$1,125
|
$657
|
$7
|
$1,898
|
$2,842
|
$9,154
|
$17,213
|
$2,240
|
Visa
|
V
|
Information
Technology
|
$1,072
|
$3,141
|
$2,152
|
$8,862
|
$8,178
|
$36,953
|
$52,671
|
$2,025
|
HP
|
HPQ
|
Information
Technology
|
$953
|
$123
|
$533
|
$2,228
|
$2,542
|
$9,302
|
$31,843
|
$1,001
|
Adobe
|
ADBE
|
Information
Technology
|
$904
|
$1,317
|
$774
|
$3,784
|
$2,748
|
$10,917
|
$14,717
|
$0
|
Texas
Instruments
|
TXN
|
Information
Technology
|
$882
|
$1,641
|
$863
|
$3,468
|
$5,224
|
$16,688
|
$28,684
|
$3,304
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Johnson &
Johnson
|
JNJ
|
Health
Care
|
$706
|
$1,711
|
$2,486
|
$4,471
|
$8,971
|
$32,564
|
$62,574
|
$10,644
|
Accenture
plc
|
ACN
|
Information
Technology
|
$627
|
$970
|
$489
|
$2,733
|
$2,836
|
$13,574
|
$25,476
|
$2,038
|
Fiserv
|
FISV
|
Information
Technology
|
$604
|
$970
|
$2
|
$1,660
|
$1,307
|
$6,603
|
$9,966
|
$0
|
Dollar
General
|
DG
|
Consumer
Discretionary
|
$602
|
$63
|
$185
|
$1,480
|
$1,043
|
$5,008
|
$8,022
|
$362
|
PepsiCo
|
PEP
|
Consumer
Staples
|
$567
|
$649
|
$793
|
$2,504
|
$2,863
|
$14,578
|
$32,099
|
$5,675
|
Top
20
|
|
|
$77,271
|
$58,432
|
$46,545
|
$236,422
|
$201,902
|
$777,192
|
$1,088,923
|
$62,470
|
S&P
500
|
|
|
$88,661
|
$198,722
|
$644,603
|
$644,604
|
$798,005
|
$3,174,525
|
$5,448,990
|
$503,015
|
Top 20 % of
S&P 500
|
|
|
87.15%
|
29.40%
|
7.22%
|
36.68%
|
25.30%
|
24.48%
|
19.98%
|
12.42%
|
Gross
values are not adjusted for float
|
|
|
|
|
|
|
|
|
|
|
S&P Dow Jones
Indices
|
S&P 500 20
Largest Quarterly Buybacks, $ Millions, as of Q2 2020; Apple added
at #11 and T-Mobile at #13
|
$
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
|
$18,761
|
Q1 2020
|
Apple
|
Information
Technology
|
7
|
$18,154
|
Q2 2019
|
Apple
|
Information
Technology
|
8
|
$18,036
|
Q1 2014
|
Apple
|
Information
Technology
|
9
|
$17,635
|
Q3 2019
|
Apple
|
Information
Technology
|
10
|
$17,559
|
Q2
2020
|
Apple
|
Information
Technology
|
11
|
$17,319
|
Q3 2014
|
Apple
|
Information
Technology
|
12
|
$17,128
|
Q2
2020
|
T-Mobile
|
Communication
Services
|
13
|
$16,413
|
Q2 2013
|
Apple
|
Information
Technology
|
14
|
$15,707
|
Q3 2007
|
International
Business Machines
|
Information
Technology
|
15
|
$13,420
|
Q3 2015
|
Apple
|
Information
Technology
|
16
|
$12,852
|
Q4 2013
|
Johnson &
Johnson
|
Healthcare
|
17
|
$12,318
|
Q4 2016
|
Allergan plc
(AGN)
|
Healthcare
|
18
|
$12,183
|
Q2 2012
|
Johnson &
Johnson
|
Healthcare
|
19
|
$11,480
|
Q4 2016
|
Apple
|
Information
Technology
|
20
|
S&P Dow Jones
Indices
|
S&P 500 Q2
2020 Buyback Report
|
|
|
|
|
SECTOR
|
DIVIDEND
|
BUYBACK
|
COMBINED
|
|
YIELD
|
YIELD
|
YIELD
|
Consumer
Discretionary
|
0.75%
|
1.68%
|
2.43%
|
Consumer
Staples
|
3.55%
|
1.23%
|
4.78%
|
Energy
|
6.72%
|
2.24%
|
8.96%
|
Financials
|
2.56%
|
5.39%
|
7.94%
|
HealthCare
|
1.77%
|
1.75%
|
3.52%
|
Industrials
|
1.86%
|
2.04%
|
3.89%
|
Information
Technology
|
1.14%
|
2.60%
|
3.73%
|
Materials
|
2.13%
|
1.78%
|
3.92%
|
Real
Estate
|
3.04%
|
0.38%
|
3.42%
|
Communications
Services
|
1.27%
|
2.80%
|
4.06%
|
Utilities
|
3.53%
|
0.17%
|
3.70%
|
S&P
500
|
1.85%
|
2.36%
|
4.21%
|
|
Uses
full values (unadjusted for float)
|
Dividends based on indicated; buybacks based on the last 12-months
ending Q2,'20
|
Share Count
Changes
|
|
|
(Y/Y diluted
shares used for EPS)
|
>=4%
|
<=-4%
|
Q2
2020
|
8.42%
|
18.04%
|
Q1
2020
|
8.00%
|
19.60%
|
Q4
2019
|
7.63%
|
20.68%
|
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%
|
ABOUT S&P DOW JONES INDICES
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