17/06/2024 | Press release | Archived content
NEW YORK, June 17, 2024/PRNewswire/ -- S&P Dow Jones Indices (S&P DJI) today announced the preliminary S&P 500® stock buybacks or share repurchases data for Q1 2024.
Historical data on S&P 500 buybacks is available at www.spdji.com/indices/equity/sp-500.
Key Takeaways:
"The share count impact on EPS increased for the first time after five consecutive quarters of declines as companies increased their overall buyback expenditure by 8%, which countered the impact of both share issuance and employee options being exercised. While buybacks supported share price, 13.3% of the issues saw a significant increase (of at least 4%) in their EPS due to share count reduction, compared to 18.5% in Q1 2023. For Q1 2024, more issues did buybacks and spent more. While the 13.3% remains lower than the 17.5% average and pales compared to the almost 25% rate posted in Q1 2019, the increase comes after five quarters of declines, and hints to a forward upswing. Companies with strong cashflows continued to aggressively do buybacks, as the top 20 issues accounted for 50.9% of the buybacks in Q1 2024," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices.
"Given the market's current expectations for interest rates to decline later in the year and the continued uncertainty over geopolitical and domestic issues, companies may be shy to finance buybacks going forward as discretionary buybacks, which reduce share count, may need to be financed from ongoing operations. Top-tier cash-flow issues however are seen as continuing their buybacks and positively impacting their EPS."
1% Buyback Excise Tax:
The 1% excise tax on net buybacks reduced Q1 2024 operating earnings by 0.47%, up from Q4 2023's 0.44% and up from the 0.45% for Q1 2023. The 12-month impact was 0.41%, up from 2023's 40% and down from the proforma 2022 of 0.51%. The tax on As Reported GAAP earnings impact increased to 0.54%, up from the Q4 2023 0.50% and up from the Q1 2023 0.49%. The 12-month impact was 0.46%, up from 2023's 0.45% and down from the proforma 2022 0.58%.
Silverblatt added: "The 1% tax remains an expense but has not impacted overall buybacks at this point. However, given the initial 1% buyback tax had bipartisan support and remains an attractive cash generator for the government, there is an expectation that some increase or potential change to the type of buybacks that are taxed will remain on the table following the election cycle. Given the current corporate sensitivity to costs, a buyback tax rate of 2%-to-2.5% was seen as impacting both buybacks and the EPS impact of share-count-reduction (which is already at a lower level due to high stock prices). This is because some of the expenditures may shift from buybacks to dividends. However, any shift would not be on a-dollar-for-dollar basis as dividends remain a long-term pure cash-flow item which must be incorporated into corporate budgets."
Q1 2024 GICS® Sector Analysis:
Information Technology maintained its lead in buybacks, representing 24.2% of all buybacks for the quarter. Q1 2024 expenditures increased 1.8% to $57.3 billion, compared to Q4 2023's $56.3 billion, it was up 24.8% from Q1 2023's $45.9 billionexpenditure. For the 12-months ending March 2024, the sector decreased their expenditure 11.4% to $209.3 billion, representing 25.6% of all S&P 500 buybacks, compared to $236.3 billionspent in the prior 12-month period ending March 2023, which represented 27.6% of all buybacks.
Financials increased their buybacks by 46.5% for Q1 2024 as they spent $43.1 billionon buybacks, accounting for 18.2% of all S&P 500 buybacks. This was up for the quarter compared to Q4 2023's expenditure of $29.4 billion, but down from Q1 2023's $46.9 billion. For the 12-month March 2024period, Financials spent $134.5 billion, up from $113.6 billionfor the prior 12-month period.
Healthcare significantly increased their Q1 2024 expenditure by 93.5%, spending $25.5 billion, compared to the Q4 2023 expenditure of $13.2 billionand up 10.0% from the Q1 2023 $23.2 billionexpenditure. For the 12-months ending March 2024, the sector spent $67.1 billion, down from the prior period's expenditure of $84.9 billion.
Consumer Staples increased their spending in Q1 2024 by 32.7% to $12.0 billion, up from the prior $9.0 billionand up 90.9% from the Q1 2023 expenditure of $6.3 billion.
Consumer Discretionary decreased their spending by 44.1% to $16.1 billionfrom Q4 2023's $28.7 billionand was 12.3% lower than the $18.3 billionspent in Q1 2023.
Issues:
The five issues with the highest total buybacks for Q1 2024 were:
For more information about S&P Dow Jones Indices, please visit https://www.spglobal.com/spdji/en/.
S&P Dow Jones Indices |
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S&P 500 proforma net buyback tax impact |
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TAX |
TAX % OF |
TAX % OF |
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$ BILLIONS |
OPERATING |
AS REPORTED |
12 Mo Mar,'24 |
$7.44 |
0.41 % |
0.46 % |
12 Mo Mar,'23 |
$7.88 |
0.47 % |
0.54 % |
Q1 2024 |
$2.18 |
0.47 % |
0.54 % |
Q4 2023 |
$2.02 |
0.44 % |
0.50 % |
Q3 2023 |
$1.70 |
0.39 % |
0.42 % |
Q2 2023 |
$1.55 |
0.34 % |
0.38 % |
Q1 2023 |
$1.98 |
0.45 % |
0.49 % |
2023 |
$7.47 |
0.40 % |
0.45 % |
2022 proforma |
$8.47 |
0.51 % |
0.58 % |
2021 proforma |
$7.93 |
0.45 % |
0.47 % |
S&P Dow Jones Indices |
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S&P 500, $ U.S. BILLIONS |
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(preliminary in bold) |
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PERIOD |
MARKET |
OPERATING |
AS REPORTED |
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DIVIDEND & |
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VALUE |
EARNINGS |
EARNINGS |
DIVIDENDS |
BUYBACKS |
DIVIDEND |
BUYBACK |
BUYBACK |
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$ BILLIONS |
$ BILLIONS |
$ BILLIONS |
$ BILLIONS |
$ BILLIONS |
YIELD |
YIELD |
YIELD |
12 Mo Mar,'24 Prelim. |
$44,078 |
$1,808.90 |
$1,606.39 |
$593.08 |
$816.45 |
1.35 % |
1.85 % |
3.20 % |
12 Mo Mar,'23 |
$34,342 |
$1,678.59 |
$1,469.32 |
$573.73 |
$857.20 |
1.67 % |
2.50 % |
4.17 % |
2023 |
$40,039 |
$1,787.36 |
$1,610.73 |
$588.23 |
$795.16 |
1.47 % |
1.99 % |
3.46 % |
2022 |
$32,133 |
$1,656.66 |
$1,453.43 |
$564.57 |
$922.68 |
1.76 % |
2.87 % |
4.63 % |
2021 |
$40,356 |
$1,762.75 |
$1,675.22 |
$511.23 |
$881.72 |
1.27 % |
2.18 % |
3.45 % |
2020 |
$31,659 |
$1,019.04 |
$784.21 |
$483.18 |
$519.76 |
1.53 % |
1.64 % |
3.17 % |
2019 |
$26,760 |
$1,304.76 |
$1,158.22 |
$485.48 |
$728.74 |
1.81 % |
2.72 % |
4.54 % |
2018 |
$21,027 |
$1,281.66 |
$1,119.43 |
$456.31 |
$806.41 |
2.17 % |
3.84 % |
6.01 % |
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3/28/2024 Prelim. |
$44,078 |
$460.63 |
$400.23 |
$151.61 |
$236.82 |
1.35 % |
1.85 % |
3.20 % |
12/31/2023 |
$40,039 |
$452.44 |
$401.16 |
$154.10 |
$219.09 |
1.47 % |
1.99 % |
3.46 % |
9/30/2023 |
$35,938 |
$437.90 |
$399.35 |
$144.18 |
$185.62 |
1.61 % |
2.19 % |
3.81 % |
6/30/2023 |
$37,162 |
$457.93 |
$405.66 |
$143.20 |
$174.92 |
1.55 % |
2.19 % |
3.74 % |
3/31/2023 |
$34,342 |
$439.08 |
$404.57 |
$146.76 |
$215.53 |
1.67 % |
2.50 % |
4.17 % |
12/31/2022 |
$32,133 |
$421.55 |
$331.50 |
$146.07 |
$211.19 |
1.76 % |
2.87 % |
4.63 % |
9/30/2022 |
$30,119 |
$422.94 |
$373.04 |
$140.34 |
$210.84 |
1.83 % |
3.26 % |
5.09 % |
6/30/2022 |
$31,903 |
$395.02 |
$360.21 |
$140.56 |
$219.64 |
1.70 % |
3.15 % |
4.85 % |
3/31/2022 |
$38,288 |
$417.16 |
$388.68 |
$137.60 |
$281.01 |
1.37 % |
2.57 % |
3.94 % |
12/31/2021 |
$40,356 |
$480.35 |
$456.72 |
$133.90 |
$270.10 |
1.27 % |
2.18 % |
3.45 % |
9/30/2021 |
$36,538 |
$441.26 |
$420.64 |
$130.04 |
$234.64 |
1.37 % |
2.03 % |
3.40 % |
6/30/2021 |
$36,325 |
$439.95 |
$409.02 |
$123.38 |
$198.84 |
1.33 % |
1.68 % |
3.01 % |
3/31/2021 |
$33,619 |
$401.19 |
$388.84 |
$123.91 |
$178.13 |
1.43 % |
1.48 % |
2.91 % |
12/31/2020 |
$31,659 |
$321.81 |
$265.00 |
$121.62 |
$130.59 |
1.53 % |
1.64 % |
3.17 % |
9/30/2020 |
$27,868 |
$314.06 |
$273.29 |
$115.54 |
$101.79 |
1.75 % |
2.05 % |
3.80 % |
6/30/2020 |
$25,637 |
$221.53 |
$147.44 |
$119.04 |
$88.66 |
1.93 % |
2.52 % |
4.45 % |
3/31/2020 |
$21,424 |
$161.64 |
$98.48 |
$126.98 |
$198.72 |
2.31 % |
3.37 % |
5.68 % |
S&P Dow Jones Indices |
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S&P 500 SECTOR BUYBACKS |
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SECTOR $ MILLIONS |
Q1,'24 |
Q4,'23 |
Q1,'23 |
12MoMar,'24 |
12MoMar,'23 |
5-YEARS |
10-YEARS |
Consumer Discretionary |
$16,059 |
$28,716 |
$18,301 |
$81,248 |
$84,301 |
$360,610 |
$793,279 |
Consumer Staples |
$11,998 |
$9,042 |
$6,284 |
$30,318 |
$35,294 |
$157,523 |
$370,235 |
Energy |
$14,157 |
$16,060 |
$19,304 |
$64,703 |
$74,534 |
$179,256 |
$275,563 |
Financials |
$43,087 |
$29,418 |
$46,891 |
$134,549 |
$113,632 |
$710,002 |
$1,283,424 |
Healthcare |
$25,522 |
$13,188 |
$23,194 |
$67,077 |
$84,941 |
$376,507 |
$783,092 |
Industrials |
$16,854 |
$27,112 |
$14,239 |
$70,837 |
$71,589 |
$304,040 |
$656,239 |
Information Technology |
$57,290 |
$56,283 |
$45,923 |
$209,260 |
$236,303 |
$1,135,899 |
$1,976,566 |
Materials |
$5,241 |
$2,963 |
$3,773 |
$16,636 |
$24,725 |
$91,030 |
$159,612 |
Real Estate |
$620 |
$243 |
$526 |
$1,787 |
$3,174 |
$11,962 |
$20,741 |
Communication Services |
$45,126 |
$34,715 |
$35,797 |
$137,232 |
$126,691 |
$538,868 |
$573,389 |
Utilities |
$868 |
$1,353 |
$1,299 |
$2,806 |
$2,018 |
$13,374 |
$21,088 |
TOTAL |
$236,823 |
$219,091 |
$215,532 |
$816,454 |
$857,202 |
$3,879,073 |
$6,913,228 |
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SECTOR BUYBACK MAKEUP % |
Q1,'24 |
Q4,'23 |
Q1,'23 |
12MoMar,'24 |
12MoMar,'23 |
5-YEARS |
10-YEARS |
Consumer Discretionary |
6.78 % |
13.11 % |
8.49 % |
9.95 % |
9.83 % |
9.30 % |
11.47 % |
Consumer Staples |
5.07 % |
4.13 % |
2.92 % |
3.71 % |
4.12 % |
4.06 % |
5.36 % |
Energy |
5.98 % |
7.33 % |
8.96 % |
7.92 % |
8.70 % |
4.62 % |
3.99 % |
Financials |
18.19 % |
13.43 % |
21.76 % |
16.48 % |
13.26 % |
18.30 % |
18.56 % |
Healthcare |
10.78 % |
6.02 % |
10.76 % |
8.22 % |
9.91 % |
9.71 % |
11.33 % |
Industrials |
7.12 % |
12.37 % |
6.61 % |
8.68 % |
8.35 % |
7.84 % |
9.49 % |
Information Technology |
24.19 % |
25.69 % |
21.31 % |
25.63 % |
27.57 % |
29.28 % |
28.59 % |
Materials |
2.21 % |
1.35 % |
1.75 % |
2.04 % |
2.88 % |
2.35 % |
2.31 % |
Real Estate |
0.26 % |
0.11 % |
0.24 % |
0.22 % |
0.37 % |
0.31 % |
0.30 % |
Communication Services |
19.05 % |
15.85 % |
16.61 % |
16.81 % |
14.78 % |
13.89 % |
8.29 % |
Utilities |
0.37 % |
0.62 % |
0.60 % |
0.34 % |
0.24 % |
0.34 % |
0.31 % |
TOTAL |
100.00 % |
100.00 % |
100.00 % |
100.00 % |
100.00 % |
100.00 % |
100.00 % |
S&P Dow Jones Indices |
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S&P 500 20 LARGEST Q1 2024 BUYBACKS, $ MILLIONS |
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Company |
Ticker |
Sector |
Q1 2024 |
Q4 2023 |
Q1 2023 |
12-Months |
12-Months |
5-Year |
10-Year |
Indicated |
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Buybacks |
Buybacks |
Buybacks |
Mar,'24 |
Mar,'23 |
Buybacks |
Buybacks |
Dividend |
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$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
Apple |
AAPL |
Information Technology |
$23,489 |
$22,730 |
$20,012 |
$87,397 |
$91,101 |
$429,133 |
$663,869 |
$14,515 |
Meta Platforms |
META |
Communication Services |
$18,170 |
$8,165 |
$10,374 |
$34,582 |
$31,494 |
$141,809 |
$164,319 |
$4,400 |
Alphabet |
GOOGL |
Communication Services |
$15,696 |
$16,191 |
$14,557 |
$62,643 |
$60,553 |
$233,290 |
$255,709 |
$4,714 |
NVIDIA |
NVDA |
Information Technology |
$9,492 |
$3,500 |
$507 |
$21,301 |
$9,493 |
$36,508 |
$42,667 |
$988 |
Wells Fargo |
WFC |
Financials |
$6,001 |
$2,350 |
$4,016 |
$13,836 |
$4,031 |
$62,351 |
$124,396 |
$5,038 |
Caterpillar |
CAT |
Industrials |
$4,455 |
$2,790 |
$400 |
$9,054 |
$3,812 |
$20,781 |
$29,856 |
$2,647 |
Microsoft |
MSFT |
Information Technology |
$4,213 |
$4,000 |
$5,509 |
$18,748 |
$25,298 |
$122,971 |
$191,972 |
$22,291 |
Cigna Group |
CI |
Health Care |
$4,022 |
$544 |
$962 |
$5,344 |
$7,201 |
$27,222 |
$32,558 |
$1,638 |
T-Mobile US |
TMUS |
Communication Services |
$3,786 |
$2,213 |
$4,806 |
$12,351 |
$7,877 |
$40,747 |
$43,007 |
$1,358 |
UnitedHealth Group |
UNH |
Health Care |
$3,072 |
$1,500 |
$2,000 |
$9,072 |
$6,500 |
$29,820 |
$44,399 |
$7,769 |
CVS Health |
CVS |
Health Care |
$3,058 |
$5 |
$2,052 |
$3,199 |
$3,860 |
$9,432 |
$25,539 |
$3,347 |
Exxon Mobil |
XOM |
Energy |
$3,011 |
$4,656 |
$4,340 |
$16,419 |
$17,428 |
$36,647 |
$52,781 |
$17,152 |
Thermo Fisher Scientific |
TMO |
Health Care |
$3,000 |
$0 |
$3,000 |
$3,000 |
$4,000 |
$13,358 |
$17,111 |
$603 |
Chevron |
CVX |
Energy |
$2,891 |
$3,397 |
$3,607 |
$13,962 |
$12,410 |
$31,483 |
$36,332 |
$11,309 |
JPMorgan Chase |
JPM |
Financials |
$2,832 |
$2,275 |
$2,690 |
$9,966 |
$3,397 |
$59,653 |
$119,209 |
$13,299 |
Visa |
V |
Financials |
$2,767 |
$3,752 |
$2,200 |
$13,323 |
$9,967 |
$51,837 |
$82,702 |
$3,290 |
Goldman Sachs |
GS |
Financials |
$2,752 |
$1,001 |
$3,825 |
$6,068 |
$6,889 |
$28,031 |
$58,509 |
$3,587 |
Comcast |
CMCSA |
Communication Services |
$2,664 |
$3,521 |
$2,176 |
$11,779 |
$12,281 |
$32,746 |
$59,351 |
$4,913 |
Berkshire Hathaway |
BRK.b |
Financials |
$2,562 |
$2,193 |
$4,450 |
$7,283 |
$9,124 |
$74,619 |
$77,550 |
$0 |
Bank of America |
BAC |
Financials |
$2,500 |
$811 |
$2,215 |
$4,861 |
$4,638 |
$66,181 |
$113,071 |
$6,610 |
Top 20 |
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$120,433 |
$85,594 |
$93,698 |
$364,188 |
$331,354 |
$1,548,619 |
$2,234,907 |
$129,470 |
S&P 500 |
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$236,823 |
$219,091 |
$215,532 |
$816,454 |
$857,202 |
$3,879,073 |
$6,913,228 |
$617,469 |
Top 20 % of S&P 500 |
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50.85 % |
39.07 % |
43.47 % |
44.61 % |
38.66 % |
39.92 % |
32.33 % |
20.97 % |
Gross values are not adjusted for float |
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S&P Dow Jones Indices |
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S&P 500 Q1 2024 Buyback Report |
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SECTOR |
DIVIDEND |
BUYBACK |
COMBINED |
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YIELD |
YIELD |
YIELD |
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Consumer Discretionary |
0.79 % |
1.87 % |
2.67 % |
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Consumer Staples |
2.59 % |
1.20 % |
3.79 % |
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Energy |
3.19 % |
3.89 % |
7.08 % |
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Financials |
1.70 % |
2.40 % |
4.11 % |
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HealthCare |
1.65 % |
1.23 % |
2.88 % |
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Industrials |
1.47 % |
1.92 % |
3.39 % |
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Information Technology |
0.66 % |
1.46 % |
2.12 % |
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Materials |
1.86 % |
1.66 % |
3.52 % |
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Real Estate |
3.70 % |
0.19 % |
3.88 % |
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Communications Services |
1.13 % |
4.10 % |
5.23 % |
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Utilities |
3.24 % |
0.35 % |
3.59 % |
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S&P 500 |
1.40 % |
1.86 % |
3.25 % |
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Uses full values (unadjusted for float) |
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Dividends based on indicated; buybacks based on the last 12-months ending Q1,'24 |
Share Count Changes |
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(Y/Y diluted shares used for EPS) |
>=4% |
<=-4% |
Q1 2024 |
4.62 % |
13.25 % |
Q4 2023 |
3.81 % |
12.63 % |
Q3 2023 |
4.60 % |
13.80 % |
Q2 2023 |
4.22 % |
16.27 % |
Q1 2023 |
4.02 % |
18.47 % |
Q4 2022 |
5.01 % |
19.44 % |
Q3 2022 |
7.21 % |
21.24 % |
Q2 2022 |
8.42 % |
19.84 % |
Q1 2022 |
7.62 % |
17.64 % |
Q4 2021 |
10.06 % |
14.89 % |
Q3 2021 |
10.22 % |
7.41 % |
Q2 2021 |
11.02 % |
5.41 % |
Q1 2021 |
10.40 % |
5.80 % |
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