NEW YORK, Sept. 24, 2018
/PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI")
today announced preliminary results indicating that S&P
500® stock buybacks, or share repurchases,
totaled $190.6 billion for Q2
2018, displacing the prior quarterly record of $189.1 billion, set during Q1 2018. This is a
58.7% increase from the $120.1
billion reported for Q2 2017. For the first half of 2018,
buybacks are up 49.9% to $379.7
billion from the prior year's $253.3
billion.
For the 12-month period ending June
2018, S&P 500 issues spent a record $645.8 billion on buybacks, up 29.0% from
$500.8 billion for the corresponding
2017 period. This is 9.6% higher than the prior record of
$589.4 billion, set during the
12-month period ending March
2016.
Historical data on S&P 500 buybacks is available at
www.spdji.com/indices/equity/sp-500.
Key Takeaways:
- The number of issues with substantially reduced share counts of
at least 4.0% year-over-year rebounded to 15.4%, from the prior
quarter's 13.5%. This is the highest since the 19.4% posted in Q4
2016.
- For Q2 2018, 79 issues experienced substantially reduced share
counts, up from 65 for Q1 2018 and 70 for both Q4 2017 and Q3 2017,
with Q2 2017 posting 66.
- Total shareholder return for the quarter set a record of
$302.2 billion, up 34.9% from the
$224.1 billion reported for Q2
2017.
- S&P 500 dividends totaled $111.6
billion, a new record, up 7.3% from the $104.0 billion of Q1 2018.
- Total shareholder return of buybacks and dividends for the
12-month period ending June 2018 set
a record at $1.081 trillion,
surpassing the Q1's record $1.003
trillion, and up 19.1% from $907.9
billion for the corresponding 2017 period.
- 305 S&P 500 issues reduced their share count during Q2
2018, compared to 250 during Q1 2018 and 268 during Q2 2017.
"The Q1 2018 buyback level was remarkable and the new Q2 2018
record continued to exceed expectations," said Howard Silverblatt, Senior Index Analyst at
S&P Dow Jones Indices. "Given the record earnings,
strong cash-flow, investor demand and corporate statements, the
indications are that the high level will continue for the rest of
the year."
"The buying continued to be top heavy, with the top 20 issues
accounting for 49.7% of all S&P 500 buybacks (the 5-year
average is 41.7%), a level not seen since Q3 2012, when it was at
53.4%."
"More index issues experienced a significant EPS tailwind, as
share count reductions of at least 4.0% increased for the quarter,
as the number of issues increasing their shares dropped.
Further, based on the current Q2 2018 actual shares and the
historical Q3 2017 shares, absent a dramatic pullback in buybacks
or increase in issuance, 11% of the S&P 500 issues already have
a substantial tailwind built into their Q3 2018 EPS, which
currently is estimated to set another record."
Q2 2018 GICS® Sector Analysis:
Telecommunications Services buybacks jumped 146% ahead of
the sector's reorganization (September
2018), but remains only 0.22% of all S&P 500 buybacks
and is 89.1% lower than it was five years ago (Q2 2013).
Information Technology expenditures increased 12.8%,
after Q1's 77.1% gain, to $71.5
billion – compared to $63.4
billion for Q1 2018 and $27.6
billion for Q2 2017. The sector represents 37.5% of the
index's buybacks, up from 23.0% for Q2 2017.
Health Care expenditures, which were up 125.3%, declined
23.5% to $27.2 billion compared to
$35.6 billion for Q1 2018; and was
116% more than the $12.6 billion
expenditure from Q2 2017.
Consumer sectors split, as Consumer Discretionary
buybacks increased 21.3% to $22.7
billion, up from $18.7 billion
for Q1 2018. Consumer Staples declined 9.3% to $6.6 billion, down from $7.3 billion for Q1 2018.
Issues:
The five issues with the highest total buybacks for Q2 2018
are:
- Apple (AAPL) again led in buybacks, spending
$21.9 billion in Q2 2018, down from
the record $22.8 billion spent for Q1
2018, as the quarter ranked second highest historically; Apple
holds the top six positions for buybacks historically. Apple
accounted for 30.6% of the IT sector's buybacks and 11.5% of all
S&P 500 buybacks for Q2 2018.
- AbbVie (ABBV): $7.5
billion for Q2 2018, up from $1.4
billion for Q1 2018 and a minor $5
million for Q2 2017. AbbVie was 27.6% of all S&P 500
Health Care sector buybacks for Q2 2018.
- Cisco Systems (CSCO): $6.1
billion for Q2 2018, down from $6.2
billion for Q4 2017 and up from $1.3
billion for Q2 2017.
- Union Pacific (UNP): $5.5
billion for Q2 2018, up from $1.2
billion for Q1 2018 and $0.9
billion for Q2 2017.
- Broadcom (AVGO): $5.4
billion for Q2 2018, up from $0.3
billion for Q1 2018 and none for Q2 2017.
Total Shareholder Return:
Silverblatt determined that total shareholder return,
through regular cash dividends and buybacks, increased 1.3% to
the first $300 billion quarterly
posting, at $302.2 billion, up
from $298.2 billion for Q1 2018 and
up 34.9% from the $224.1 billion for
Q2 2017.
For the 12-month period ending June
2018, shareholder return totaled $1.081 trillion, up 19.1% from $907.9 billion for the 12-month period ending
June 2017.
S&P 500 dividends posted a new record payment for Q2 2018,
at $111.6 billion, and was up 7.3%
from its $104.0 billion Q2 2017.
Dividend payments totaled a record $435.7
billion for the 12-month period ending June 2018, up 7.0% from $407.1 billion for the 12-month period ending
June 2017.
"For the second half of 2018, indications are strong for
increased corporate expenditures in both buybacks and dividends,
with annual records for both," said Silverblatt.
"Buybacks appear to be on a roll, supporting stock price via
more purchases and increasing EPS through lower share counts.
"One strong takeaway are the trend in dividends where more
issues continue to increase with greater average size increases.
Dividends are a pure cash-flow item, so when they are increased,
companies are usually very confident of their future earnings
flow," states Silverblatt.
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
2018
|
$23,036
|
$1,196.67
|
$1,043.55
|
$435.69
|
$645.81
|
1.89%
|
2.80%
|
4.69%
|
$1,081.50
|
12 Months Jun
2017
|
$20,762
|
$996.81
|
$894.44
|
$407.11
|
$500.75
|
1.96%
|
2.41%
|
4.37%
|
$907.87
|
|
|
|
|
|
|
|
|
|
|
2017
|
$22,821
|
$1,066.00
|
$940.86
|
$419.77
|
$519.40
|
1.84%
|
2.28%
|
4.12%
|
$939.17
|
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
|
|
|
|
|
|
|
|
|
|
|
6/30/2018
Prelim.
|
$23,036
|
$328.13
|
$288.47
|
$111.60
|
$190.62
|
1.89%
|
2.80%
|
4.69%
|
$302.22
|
3/29/2018
|
$22,496
|
$311.26
|
$281.28
|
$109.18
|
$189.05
|
1.90%
|
2.56%
|
4.46%
|
$298.23
|
12/29/2017
|
$22,821
|
$288.93
|
$230.12
|
$109.46
|
$136.97
|
1.84%
|
2.28%
|
4.12%
|
$246.43
|
9/29/2017
|
$21,579
|
$268.35
|
$243.68
|
$105.45
|
$129.17
|
1.92%
|
2.40%
|
4.32%
|
$234.61
|
6/30/2017
|
$20,762
|
$261.39
|
$231.40
|
$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
|
S&P Dow Jones
Indices
|
|
|
|
|
|
|
S&P 500 SECTOR
BUYBACKS
|
|
|
|
|
|
|
SECTOR $
MILLIONS
|
Q2,'18
|
Q1,'18
|
Q2,'17
|
12MoJun','18
|
12MoJun','17
|
5-YEARS
|
|
|
|
|
|
|
|
Consumer
Discretionary
|
$22,656
|
$18,679
|
$22,357
|
$86,352
|
$81,126
|
$429,261
|
Consumer
Staples
|
$6,580
|
$7,257
|
$10,296
|
$39,904
|
$44,776
|
$217,688
|
Energy
|
$4,285
|
$10,115
|
$3,107
|
$21,922
|
$7,538
|
$113,292
|
Financials
|
$29,968
|
$33,802
|
$26,815
|
$131,925
|
$108,297
|
$494,379
|
Healthcare
|
$27,241
|
$35,632
|
$12,636
|
$88,210
|
$81,633
|
$376,147
|
Industrials
|
$23,426
|
$16,628
|
$14,799
|
$64,702
|
$56,952
|
$347,013
|
Information
Technology
|
$71,511
|
$63,424
|
$27,628
|
$198,677
|
$109,815
|
$744,913
|
Materials
|
$3,237
|
$2,283
|
$1,020
|
$8,998
|
$7,104
|
$69,281
|
Real
Estate
|
$884
|
$883
|
$1,150
|
$3,888
|
$2,483
|
$6,371
|
Telecommunication
Services
|
$419
|
$170
|
$282
|
$601
|
$789
|
$14,622
|
Utilities
|
$413
|
$179
|
$20
|
$631
|
$243
|
$5,487
|
TOTAL
|
$190,621
|
$189,051
|
$120,109
|
$645,811
|
$500,754
|
$2,818,454
|
S&P Dow Jones
Indices
|
|
|
|
|
|
|
|
S&P 500 20
LARGEST Q1 2018 BUYBACKS, $ MILLIONS
|
|
|
|
|
|
Company
|
Ticker
|
Sector
|
Q2,'18
|
12MO
Jun,'18
|
12MO
Jun,'17
|
5-Year
|
10-year
|
Indicated
|
|
|
|
Buybacks
|
Buybacks
|
Buybacks
|
Buybacks
|
Buybacks
|
Dividend
|
|
|
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
$
Million
|
Apple
|
AAPL
|
Information
Technology
|
$21,860
|
$63,924
|
$32,986
|
$208,629
|
$226,579
|
$14,352
|
AbbVie
|
ABBV
|
Healthcare
|
$7,516
|
$9,457
|
$2,716
|
$24,830
|
$24,951
|
$5,819
|
Cisco
Systems
|
CSCO
|
Information
Technology
|
$6,147
|
$18,250
|
$4,304
|
$41,689
|
$67,923
|
$6,208
|
Union
Pacific
|
UNP
|
Industrials
|
$5,527
|
$9,095
|
$3,464
|
$21,886
|
$27,559
|
$2,482
|
Broadcom
|
AVGO
|
Information
Technology
|
$5,378
|
$5,725
|
$0
|
$5,770
|
$6,042
|
$3,022
|
JPMorgan
|
JPM
|
Financials
|
$4,968
|
$19,210
|
$10,385
|
$45,546
|
$62,811
|
$7,627
|
Bank of
America
|
BAC
|
Financials
|
$4,965
|
$17,673
|
$7,693
|
$34,015
|
$35,018
|
$6,084
|
Oracle
|
ORCL
|
Information
Technology
|
$4,965
|
$11,853
|
$3,844
|
$44,140
|
$67,141
|
$3,103
|
Intel
|
INTC
|
Information
Technology
|
$4,358
|
$7,385
|
$3,518
|
$28,546
|
$54,967
|
$5,592
|
Celgene
|
CELG
|
Healthcare
|
$3,396
|
$9,118
|
$1,265
|
$19,218
|
$25,721
|
$0
|
Facebook
|
FB
|
Information
Technology
|
$3,349
|
$6,721
|
$378
|
$7,099
|
$7,100
|
$0
|
Amgen
|
AMGN
|
Healthcare
|
$3,244
|
$15,539
|
$3,309
|
$22,071
|
$43,564
|
$3,516
|
Boeing
|
BA
|
Industrials
|
$2,965
|
$10,201
|
$6,500
|
$36,755
|
$37,678
|
$3,985
|
Wells
Fargo
|
WFC
|
Financials
|
$2,927
|
$11,734
|
$8,724
|
$46,803
|
$56,389
|
$8,381
|
Biogen
|
BIIB
|
Healthcare
|
$2,750
|
$3,000
|
$2,365
|
$11,612
|
$16,143
|
$0
|
Microsoft
|
MSFT
|
Information
Technology
|
$2,362
|
$10,721
|
$11,788
|
$60,237
|
$102,803
|
$12,908
|
Citigroup
|
C
|
Financials
|
$2,308
|
$16,071
|
$10,696
|
$37,992
|
$40,388
|
$4,590
|
Alphabet
|
GOOG
|
Information
Technology
|
$2,052
|
$6,326
|
$2,745
|
$14,544
|
$15,462
|
$0
|
Home Depot
|
HD
|
Consumer
Discretionary
|
$2,000
|
$7,200
|
$8,360
|
$36,201
|
$50,777
|
$4,753
|
Visa
|
V
|
Information
Technology
|
$1,756
|
$7,418
|
$6,933
|
$28,443
|
$38,941
|
$1,500
|
Top
20
|
|
|
$94,793
|
$266,621
|
$131,973
|
$776,025
|
$1,007,957
|
$93,921
|
S&P
500
|
|
|
$190,621
|
$645,811
|
$500,754
|
$2,818,454
|
$4,414,753
|
$475,404
|
Top 20 % of
S&P 500
|
|
49.73%
|
41.28%
|
26.35%
|
27.53%
|
22.83%
|
19.76%
|
Gross
values are not adjusted for float
|
|
|
|
|
|
|
S&P Dow Jones
Indices
|
|
|
S&P 500 20
Largest Quarterly Buybacks, $ Millions, as of Q2 2018, 1
added
|
|
$
MILLIONS
|
QUARTER
|
COMPANY
|
SECTOR
|
|
$22,756
|
Q1 2018
|
Apple
|
Information
Technology
|
1
|
$21,860
|
Q2
2018
|
Apple
|
Information
Technology
|
2
|
$20,783
|
Q2 2018
|
Apple
|
Information
Technology
|
3
|
$17,971
|
Q1 2014
|
Apple
|
Information
Technology
|
4
|
$17,000
|
Q3 2014
|
Apple
|
Information
Technology
|
5
|
$16,000
|
Q2 2013
|
Apple
|
Information
Technology
|
6
|
$15,707
|
Q2 2007
|
International
Business Machines
|
Information
Technology
|
7
|
$13,253
|
Q3 2015
|
Apple
|
Information
Technology
|
8
|
$12,852
|
Q2 2012
|
Johnson &
Johnson
|
Healthcare
|
9
|
$12,318
|
Q4 2016
|
Allergan plc
(AGN)
|
Healthcare
|
10
|
$12,183
|
Q3 2012
|
Johnson &
Johnson
|
Healthcare
|
11
|
$10,851
|
Q4 2016
|
Apple
|
Information
Technology
|
12
|
$10,723
|
Q3 2007
|
Home Depot
|
Consumer
Discretionary
|
13
|
$10,697
|
Q1 2018
|
Amgen
|
Healthcare
|
14
|
$10,166
|
Q2 2016
|
Apple
|
Information
Technology
|
15
|
$10,095
|
Q4 2017
|
Apple
|
Information
Technology
|
16
|
$10,000
|
Q2 2015
|
Apple
|
Information
Technology
|
17
|
$9,859
|
Q4 2007
|
Transocean
|
Energy
|
18
|
$9,179
|
Q4 2006
|
Exxon
Mobil
|
Energy
|
19
|
$9,465
|
Q1 2008
|
Exxon
Mobil
|
Energy
|
20
|
$273,718
|
|
TOP
20
|
|
|
S&P Dow Jones
Indices
|
|
|
|
|
S&P 500 Q2
2018 Buyback Report
|
|
|
|
|
|
|
|
|
SECTOR
|
DIVIDEND
|
BUYBACK
|
COMBINED
|
|
|
YIELD
|
YIELD
|
YIELD
|
|
Consumer
Discretionary
|
1.28%
|
2.79%
|
4.08%
|
|
Consumer
Staples
|
3.44%
|
2.42%
|
5.87%
|
|
Energy
|
2.98%
|
1.58%
|
4.56%
|
|
Financials
|
1.99%
|
3.94%
|
5.93%
|
|
HealthCare
|
1.64%
|
2.47%
|
4.11%
|
|
Industrials
|
1.98%
|
2.69%
|
4.67%
|
|
Information
Technology
|
1.27%
|
3.37%
|
4.64%
|
|
Materials
|
2.08%
|
1.62%
|
3.70%
|
|
Real
Estate
|
3.45%
|
0.56%
|
4.01%
|
|
Telecommunication
Services
|
5.58%
|
0.13%
|
5.71%
|
|
Utilities
|
3.41%
|
0.09%
|
3.51%
|
|
S&P
500
|
1.98%
|
2.72%
|
4.70%
|
|
Uses
full values (unadjusted for float)
|
|
|
|
Dividends based on indicated; buybacks based on the last 12-months
ending Q2,'18
|
Share Count
Reduction (SCR)
|
SCR
|
SCR
|
(Y/Y diluted
shares used for EPS)
|
>=4%
|
<=-4%
|
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%
|
Q3
2016
|
9.94%
|
23.73%
|
Q2
2016
|
10.48%
|
26.61%
|
Q1
2016
|
10.06%
|
28.17%
|
Q4
2015
|
9.48%
|
25.81%
|
Q3
2015
|
9.64%
|
22.69%
|
Q2
2015
|
9.04%
|
21.08%
|
Q1
2015
|
7.62%
|
21.04%
|
Q4
2014
|
6.04%
|
21.33%
|
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SOURCE S&P Dow Jones Indices