03/21/2023 | Press release | Distributed by Public on 03/21/2023 08:08
NEW YORK, March 21, 2023/PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") announced today preliminary S&P 500® stock buybacks, or share repurchases, data for Q4 2022.
Historical data on S&P 500 buybacks are available at www.spdji.com/indices/equity/sp-500.
Key Takeaways:
"Companies, led by Financials, continued to pull back from their Q1 2022 record-breaking buyback expenditures, as energy remains the outlier, increasing its buybacks, as it set record profits," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "Share count reduction continues, as almost one-in-five issues increased their year-over-year EPS by at least 4% due to buybacks. The impact is expected to continue into 2023, even as economic indicators remain unclear at this point."
1% Buyback Excise Tax for 2023:
On a proforma basis, the new 1% excise tax on net buybacks would have reduced Q4 2022 operating earnings by 0.46%, the same as the proforma 0.46% for Q3 2022, with as reported GAAP earnings being reduced by 0.58%, up from the proforma 0.52% for Q3 2022. For the proforma 2022 period, the tax would have cost S&P 500 companies $8.5 billion, and would have reduced operating earnings by 0.51% and as reported GAAP earnings by 0.58%.
Silverblatt added: "The 1% tax is an additional cost, but it is still not significant enough to impact the overall buybacks at this point. In his proposed fiscal 2024 budget, President Biden quantified increasing the tax to 4%. Given the initial 1% buyback tax had bipartisan support, there is an expectation that some increase, and potential for change to the type of buybacks that are taxed, which could be incorporated into the fiscal budget. An increase to the 2.5% area could start to impact buybacks and the EPS impact of share-count-reduction due to some of the expenditures shifting from buybacks to dividends. Any shift however would not be on a-dollar-for-dollar basis, as dividends remain a long-term pure cash-flow item which must be incorporated in corporate budgets."
Q4 2022 and 2022 GICS® Sector Analysis:
Information Technology continued to lead in buybacks as its percentage of buybacks and aggregate expenditures decreased for the quarter. In Q4 2022, IT's share decreased to 27.3% of all S&P 500 buybacks compared to Q3 2022's 28.8% and was down from Q4 2021's 27.7%. Expenditures for Q4 2022 decreased (5.1%) to $57.7 billionfrom the prior quarter's $60.8 billionand were 23.0% lower than the Q4 2021 expenditure of $74.9 billion. For 2022, the sector spent $262.0 billion, representing 28.4% of all S&P buybacks, compared to the 2021 $260.0 billionexpenditure, which represented 29.5% of all buybacks. Over the 10-year period, the sector spent $1.892 trillion, representing 29.0% of the expenditures.
Financials decreased their buybacks as their Q4 2022 expenditures decreased 2.3% to $22.5 billion, representing 10.7% of the buybacks, from the Q3 2022 $23.0 billion. As for Q4 2021 the sector spent $51.5 billion. The pullback was attributed to large-backs protecting their dividends with respect to the Fed's bank stress test. For 2022 the sector spent $121.4 billion, down 36.3% from 2021's 190.6 billion. Expenditures were expected to increase in Q1 2023. Of note however is the recent banking circumstances, which may reduce buybacks as companies focus more on dividends and liquidity.
Energy decreased their buybacks as their expenditure declined 9.9% for the quarter to $19.8 billion, representing 9.4% of the buybacks compared to the prior quarter's $22.0 billion. However, this quarter was still an increase of 160% from Q4 2021 $7.6 billionlevel. For the year, Energy spent $63.8 billionon buybacks, up 403% from 2021's $12.7 billion.
Health Care buybacks increased 21.0% for the quarter, spending $24.4 billionin Q4 2022, representing 11.6% of all buybacks, up from the Q3 2022 $20.2 billion. This accounted for 9.6% of the buybacks, which were 11.7% higher than the Q4 2021 expenditure of $21.8 billion. For 2022, the sector spent $102.9 billion, up 35.1% from 2021's $76.2 billion.
Issues:
The five issues with the highest total buybacks for Q4 2022 are:
For more information about S&P Dow Jones Indices, please visit www.spdji.com.
S&P Dow Jones Indices |
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S&P 500 proforma net buyback tax impact |
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TAX |
TAX % OF |
TAX % OF |
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$ BILLIONS |
OPERATING |
AS REPORTED |
2022 |
$8.47 |
0.51 % |
0.58 % |
2021 |
$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 |
2022 Prelim. |
$32,133 |
$1,655.58 |
$1,453.34 |
$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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12/31/2022 Prelim. |
$32,133 |
$420.46 |
$331.41 |
$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 % |
12/31/2019 |
$26,760 |
$324.52 |
$294.29 |
$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 % |
S&P Dow Jones Indices |
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S&P 500 SECTOR BUYBACKS |
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SECTOR $ MILLIONS |
Q4,'22 |
Q3,'22 |
Q4,'21 |
12MoDec,'22 |
12MoDec,'21 |
5-YEARS |
10-YEARS |
Consumer Discretionary |
$18,819 |
$19,542 |
$30,889 |
$94,238 |
$86,554 |
$365,456 |
$782,566 |
Consumer Staples |
$7,033 |
$11,316 |
$12,817 |
$37,429 |
$39,697 |
$164,155 |
$388,486 |
Energy |
$19,833 |
$22,014 |
$7,614 |
$63,782 |
$12,691 |
$129,971 |
$245,597 |
Financials |
$22,497 |
$23,027 |
$51,514 |
$121,431 |
$190,606 |
$721,461 |
$1,178,793 |
Healthcare |
$24,394 |
$20,152 |
$21,840 |
$102,881 |
$76,158 |
$425,676 |
$770,593 |
Industrials |
$22,403 |
$17,113 |
$16,268 |
$82,095 |
$62,274 |
$316,629 |
$646,922 |
Information Technology |
$57,654 |
$60,771 |
$74,868 |
$261,960 |
$260,044 |
$1,227,229 |
$1,892,013 |
Materials |
$6,548 |
$5,678 |
$9,244 |
$28,386 |
$23,185 |
$89,783 |
$158,042 |
Real Estate |
$728 |
$793 |
$645 |
$3,779 |
$1,385 |
$13,825 |
$18,427 |
Communication Services |
$31,155 |
$30,297 |
$43,305 |
$124,963 |
$127,584 |
$392,422 |
$416,791 |
Utilities |
$126 |
$140 |
$1,099 |
$1,737 |
$1,541 |
$12,700 |
$17,875 |
TOTAL |
$211,189 |
$210,843 |
$270,102 |
$922,680 |
$881,718 |
$3,859,307 |
$6,516,106 |
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SECTOR BUYBACK MAKEUP % |
Q4,'22 |
Q3,'22 |
Q4,'21 |
12MoDec,'22 |
12MoDec,'21 |
5-YEARS |
10-YEARS |
Consumer Discretionary |
8.91 % |
9.27 % |
11.44 % |
10.21 % |
9.82 % |
9.47 % |
12.01 % |
Consumer Staples |
3.33 % |
5.37 % |
4.75 % |
4.06 % |
4.50 % |
4.25 % |
5.96 % |
Energy |
9.39 % |
10.44 % |
2.82 % |
6.91 % |
1.44 % |
3.37 % |
3.77 % |
Financials |
10.65 % |
10.92 % |
19.07 % |
13.16 % |
21.62 % |
18.69 % |
18.09 % |
Healthcare |
11.55 % |
9.56 % |
8.09 % |
11.15 % |
8.64 % |
11.03 % |
11.83 % |
Industrials |
10.61 % |
8.12 % |
6.02 % |
8.90 % |
7.06 % |
8.20 % |
9.93 % |
Information Technology |
27.30 % |
28.82 % |
27.72 % |
28.39 % |
29.49 % |
31.80 % |
29.04 % |
Materials |
3.10 % |
2.69 % |
3.42 % |
3.08 % |
2.63 % |
2.33 % |
2.43 % |
Real Estate |
0.34 % |
0.38 % |
0.24 % |
0.41 % |
0.16 % |
0.36 % |
0.28 % |
Communication Services |
14.75 % |
14.37 % |
16.03 % |
13.54 % |
14.47 % |
10.17 % |
6.40 % |
Utilities |
0.06 % |
0.07 % |
0.41 % |
0.19 % |
0.17 % |
0.33 % |
0.27 % |
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 Q4 2022 BUYBACKS, $ MILLIONS |
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Company |
Ticker |
Sector |
Q4 2022 |
Q3 2021 |
Q4 20221 |
12-Months |
12-Months |
5-Year |
10-Year |
Indicated |
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Buybacks |
Buybacks |
Buybacks |
Ded,'22 |
Dec,'21 |
Buybacks |
Buybacks |
Dividend |
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$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
Apple |
AAPL |
Information Technology |
$21,791 |
$24,736 |
$23,366 |
$94,050 |
$88,257 |
$419,781 |
$601,348 |
$13,757 |
Alphabet |
GOOGL |
Communication Services |
$15,407 |
$15,392 |
$13,473 |
$59,296 |
$50,274 |
$168,190 |
$178,509 |
$0 |
Meta Platforms |
META |
Communication Services |
$7,520 |
$7,365 |
$21,569 |
$31,551 |
$50,052 |
$114,065 |
$120,255 |
$0 |
Microsoft |
MSFT |
Information Technology |
$5,459 |
$5,573 |
$7,433 |
$28,611 |
$29,224 |
$119,767 |
$175,931 |
$20,276 |
Exxon Mobil |
XOM |
Energy |
$4,675 |
$4,494 |
$154 |
$15,155 |
$155 |
$16,935 |
$51,880 |
$14,991 |
Lockheed Martin |
LMT |
Industrials |
$4,206 |
$1,338 |
$2,087 |
$7,900 |
$4,087 |
$15,694 |
$24,294 |
$2,799 |
Comcast |
CMCSA |
Communication Services |
$3,515 |
$3,525 |
$2,055 |
$13,328 |
$4,672 |
$24,358 |
$48,146 |
$5,004 |
Chevron |
CVX |
Energy |
$3,417 |
$0 |
$0 |
$8,803 |
$618 |
$15,541 |
$24,447 |
$10,745 |
DuPont de Nemours |
DD |
Materials |
$3,252 |
$252 |
$500 |
$4,402 |
$2,169 |
$12,663 |
$20,409 |
$715 |
Visa |
V |
Information Technology |
$3,227 |
$2,106 |
$4,217 |
$10,719 |
$11,107 |
$46,168 |
$73,584 |
$2,943 |
Marathon Petroleum |
MPC |
Energy |
$2,794 |
$3,908 |
$2,742 |
$9,548 |
$4,654 |
$18,439 |
$26,897 |
$1,406 |
ConocoPhillips |
COP |
Energy |
$2,746 |
$2,804 |
$1,399 |
$9,275 |
$3,623 |
$20,291 |
$23,436 |
$2,542 |
Berkshire Hathaway |
BRK.B |
Financials |
$2,608 |
$1,055 |
$6,869 |
$7,854 |
$27,061 |
$65,817 |
$65,817 |
$0 |
T-Mobile US |
TMUS |
Communication Services |
$2,461 |
$567 |
$8 |
$3,243 |
$316 |
$24,907 |
$25,850 |
$0 |
Mastercard |
MA |
Information Technology |
$2,418 |
$1,552 |
$1,279 |
$8,894 |
$6,037 |
$31,225 |
$47,943 |
$1,935 |
Bristol-Myers Squibb |
BMY |
Health Care |
$2,416 |
$585 |
$2,751 |
$8,001 |
$6,287 |
$23,454 |
$26,587 |
$4,848 |
Booking Holdings |
BKNG |
Consumer Discretionary |
$2,343 |
$1,990 |
$4 |
$6,621 |
$163 |
$22,245 |
$29,808 |
$0 |
Salesforce |
CRM |
Information Technology |
$2,323 |
$1,677 |
$0 |
$4,000 |
$0 |
$4,000 |
$4,000 |
$0 |
McKesson |
MCK |
Health Care |
$2,016 |
$484 |
$714 |
$5,030 |
$2,228 |
$12,109 |
$17,768 |
$306 |
Procter & Gamble |
PG |
Consumer Staples |
$2,002 |
$4,000 |
$4,754 |
$8,501 |
$13,505 |
$42,173 |
$64,893 |
$8,649 |
Top 20 |
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$96,596 |
$83,403 |
$95,374 |
$344,782 |
$304,489 |
$1,217,822 |
$1,651,802 |
$90,917 |
S&P 500 |
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$211,189 |
$210,843 |
$270,102 |
$922,680 |
$881,718 |
$3,859,307 |
$6,516,107 |
$575,523 |
Top 20 % of S&P 500 |
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45.74 % |
39.56 % |
35.31 % |
37.37 % |
34.53 % |
31.56 % |
25.35 % |
15.80 % |
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Gross values are not adjusted for float |
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S&P Dow Jones Indices |
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S&P 500 Q4 2022 Buyback Report |
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SECTOR |
DIVIDEND |
BUYBACK |
COMBINED |
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YIELD |
YIELD |
YIELD |
Consumer Discretionary |
1.02 % |
2.69 % |
3.72 % |
Consumer Staples |
2.70 % |
1.70 % |
4.40 % |
Energy |
4.05 % |
4.32 % |
8.37 % |
Financials |
2.35 % |
3.50 % |
5.84 % |
HealthCare |
1.76 % |
2.14 % |
3.91 % |
Industrials |
1.78 % |
2.97 % |
4.74 % |
Information Technology |
0.99 % |
2.75 % |
3.74 % |
Materials |
2.16 % |
3.43 % |
5.60 % |
Real Estate |
3.72 % |
0.44 % |
4.15 % |
Communications Services |
1.22 % |
5.71 % |
6.93 % |
Utilities |
3.27 % |
0.18 % |
3.44 % |
S&P 500 |
1.76 % |
2.83 % |
4.59 % |
Uses full values (unadjusted for float) |
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Dividends based on indicated; buybacks based on the last 12-months ending Q4,'22 |
Share Count Changes |
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(Y/Y diluted shares used for EPS) |
>=4% |
<=-4% |
Q4 2022 |
5.01 % |
19.24 % |
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 % |
Q4 2020 |
9.02 % |
6.01 % |
Q3 2020 |
8.62 % |
9.62 % |
Q2 2020 |
8.60 % |
17.80 % |
Q1 2020 |
8.00 % |
19.60 % |
Q4 2019 |
7.63 % |
20.68 % |
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ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dowinvented the first index in 1884, S&P Dow Jones Indices has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
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(+1) 917 796 3121
[email protected]
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Senior Index Analyst
(+1) 973 769 2306
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