S&P 500 Buybacks Set Quarterly and 12-Month Records - Again
S&P Dow Jones Indices announced record Q1 2022 buybacks of $281 billion, a 4% increase from Q4 2021. Total buybacks for the 12 months ending March 2022 reached $984.6 billion, up 97.2% from the prior year. A total of 374 companies reported buybacks, with top 20 firms accounting for 42.1% of the total. Despite a 13% drop in operating earnings, companies are expected to maintain buyback activities, benefiting EPS due to reduced share counts. Notably, S&P Global (SPGI) spent $7.1 billion in Q1 2022, a significant increase from $0.002 billion in the previous quarter.
- Q1 2022 buybacks increased to a record $281 billion, signaling strong shareholder return.
- SPGI's buybacks of $7.1 billion reflect confidence in future performance.
- Total shareholder return, combining buybacks and dividends, reached $418.6 billion in Q1 2022.
- Operating earnings declined 13% in Q1 2022, which may raise concerns among investors.
S&P 500 Q1 2022 buybacks were
NEW YORK, June 16, 2022 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") announced today preliminary S&P 500® stock buybacks, or share repurchases, data for Q1 2022.
Historical data on S&P 500 buybacks are available at www.spdji.com/indices/equity/sp-500.
Key Takeaways:
- Q1 2022 share repurchases were a record
$281.0 billion , up4.0% from Q4 2021's record$270.1 billion expenditure and up57.8% from March 2021's$178.1 billion . - 374 companies reported buybacks of at least
$5 million for the quarter, up from 325 in Q4 2021 and up from 335 in Q1 2021; 395 companies did some buybacks for the quarter, up from 383 in Q4 2021 and up from 370 in Q1 2021; 432 companies did some buybacks for the 12-months ending March 2022, up from 416 in the prior period. - Buybacks remained top heavy but declined significantly with the top 20 companies accounting for
42.1% of Q1 2022 buybacks, down from Q4 2021's51.8% , down from the dominating87.2% in Q2 2020, and down from the pre-COVID historical average of44.5% . - For the 12-months ending March 2022, buybacks were a record
$984.6 billion , a97.2% increase from the$499.2 billion spent in the March 2021 time period. 17.6% of companies reduced share counts used for earnings-per-share (EPS) by at least4% year-over-year, up from Q4 2021's14.9% and Q1 2021's5.8% , but were still significantly down from the Q1 2019 rate of24.9% .- S&P 500 Q1 2022 dividends increased
2.8% to a record$137.6 billion from Q4 2021's$133.9 billion and were11.1% greater than the$123.9 billion in Q1 2021. For the 12-months ending March 2022, dividends were a record$524.9 billion , up9.3% on an aggregate basis from the 12-month's March 2021's$480.1 billion . - Total shareholder return of buybacks and dividends was a record
$418.6 billion in Q1 2022, up3.6% from Q4 2021's$404.0 billion and up38.6% from Q1 2021's$302.0 billion . - Total shareholder return for the 12-months ending March 2022 increased to a record
$1.51 0 trillion from the March 2021$0.97 9 trillion. - Buybacks are expected to continue at a higher level for Q2 2022, even as prices have declined, as reduced prices will increase the number of shares purchased and lift EPS due to share reduction.
"Companies continued their record-breaking buyback and dividend expenditures in Q1 2022, even as prices declined and market volatility and uncertainty increased," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "The record expenditures led to
Outlook for Q2 2022:
Silverblatt added, "Companies are expected to maintain their buyback activities for Q2 through the current price downturn. This means companies will be getting more shares for their expenditures and reducing share counts even further, resulting in higher EPS. Operating earnings, which had set a record in Q4 2021, declined an estimated
"Beyond Q2, at the minimum, companies are expected to cover exercised options, with stronger-cash-flow issues continuing to reduce shares. Given the strong base buying, expected earnings, even with the current level of inflation, a consumer spending slowdown and lower margins, buybacks could easily set another record in 2022."
Silverblatt noted that, "the 12-month March 2022 buyback record of
Q1 2022 GICS® Sector Analysis:
Information Technology continued to lead in buybacks, even as its percentage of buybacks declined. In Q1 2022, IT's share declined to
Health Care buybacks increased
Financial buybacks increased
Energy buybacks increased by
Communication Services buybacks decreased by
Issues:
The five issues with the highest total buybacks for Q1 2022 are:
- Apple (AAPL) continued to be the poster child for buybacks as it again spent the most of any issue, with the Q1 2022 expenditure ranked fifth highest in S&P 500 history. For the quarter, the company spent
$23.0 billion , down1.7% from Q4 2021's$23.4 billion . Apple holds 18 of the top 20 record quarters (Meta Platforms holds #9 and QUALCOM holds #10). For the 12-months ending March 2022, Apple spent$92.4 billion on buybacks, up from the prior 12-month's$89.7 billion . Over the five-year period, they have spent$375.8 billion and$533.3 billion over the ten-year period. - Alphabet (GOOG/L) was next:
$13.3 billion for Q1 2022, down from$13.5 billion in Q4 2021; the 12-month March 2022 expenditure was$52.2 billion versus the 12-month March 2021 expenditure of$40.0 billion . - Meta Platforms (META):
$10.4 billion for Q1 20221, down from$21.6 billion in Q4 2021; the 12-month March 2022 expenditure was$55.5 billion versus$19.2 billion . - Microsoft (MSFT):
$8.8 billion for Q1 2022, up from$7.4 billion in Q4 2021; the 12-month March 2022 expenditure was$31.1 billion versus$27.4 billion . - S&P Global (SPGI):
$7.1 billion for Q1 2022, up from$0.00 2 billion in Q4 2021; the 12-month March 2022 expenditure was$7.1 billion versus$0.06 billion .
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 & | ||||
VALUE | EARNINGS | EARNINGS | DIVIDENDS | BUYBACKS | DIVIDEND | BUYBACK | BUYBACK | |
$ BILLIONS | $ BILLIONS | $ BILLIONS | $ BILLIONS | $ BILLIONS | YIELD | YIELD | YIELD | |
12 Mo Mar,'22 | 1.37 % | 2.57 % | 3.94 % | |||||
12 Mo Mar,'21 | 1.43 % | 1.48 % | 2.91 % | |||||
2021 | 1.27 % | 2.18 % | 3.45 % | |||||
2020 | 1.53 % | 1.64 % | 3.17 % | |||||
2019 | 1.81 % | 2.72 % | 4.54 % | |||||
2018 | 2.17 % | 3.84 % | 6.01 % | |||||
3/31/2022 | 1.37 % | 2.57 % | 3.94 % | |||||
12/31/2022 | 1.27 % | 2.18 % | 3.45 % | |||||
9/30/2021 | 1.37 % | 2.03 % | 3.40 % | |||||
6/30/2021 | 1.33 % | 1.68 % | 3.01 % | |||||
3/31/2021 | 1.43 % | 1.48 % | 2.91 % | |||||
12/31/2020 | 1.53 % | 1.64 % | 3.17 % | |||||
9/30/2020 | 1.75 % | 2.05 % | 3.80 % | |||||
6/30/2020 | 1.93 % | 2.52 % | 4.45 % | |||||
3/31/2020 | 2.31 % | 3.37 % | 5.68 % | |||||
12/31/2019 | 1.81 % | 2.72 % | 4.54 % | |||||
9/30/2019 | 1.94 % | 3.12 % | 5.06 % | |||||
6/28/2019 | 1.93 % | 3.27 % | 5.20 % | |||||
3/29/2019 | 1.97 % | 3.49 % | 5.45 % | |||||
12/31/2018 | 2.17 % | 3.84 % | 6.01 % | |||||
9/30/2018 | 1.81 % | 2.93 % | 4.75 % | |||||
6/30/2018 | 1.89 % | 2.80 % | 4.69 % | |||||
3/29/2018 | 1.90 % | 2.56 % | 4.46 % | |||||
S&P Dow Jones Indices | |||||||
S&P 500 SECTOR BUYBACKS | |||||||
SECTOR $ MILLIONS | Q1,'22 | Q4,'21 | Q1,'21 | 12MoMar,'22 | 12MoMar,'21 | 5-YEARS | 10-YEARS |
Consumer Discretionary | |||||||
Consumer Staples | |||||||
Energy | |||||||
Financials | |||||||
Healthcare | |||||||
Industrials | |||||||
Information Technology | |||||||
Materials | |||||||
Real Estate | |||||||
Communication Services | |||||||
Utilities | |||||||
TOTAL | |||||||
SECTOR BUYBACK MAKEUP % | Q1,'22 | Q4,'21 | Q1,'21 | 12MoMar,'22 | 12MoMar,'21 | 5-YEARS | 10-YEARS |
Consumer Discretionary | 10.05 % | 11.44 % | 8.94 % | 10.04 % | 5.88 % | 10.18 % | 12.35 % |
Consumer Staples | 3.00 % | 4.75 % | 5.41 % | 3.91 % | 4.83 % | 4.76 % | 6.38 % |
Energy | 3.04 % | 2.82 % | 0.27 % | 2.11 % | 0.19 % | 2.37 % | 3.49 % |
Financials | 19.46 % | 19.07 % | 19.87 % | 21.32 % | 13.91 % | 20.80 % | 18.67 % |
Healthcare | 14.64 % | 8.09 % | 11.45 % | 9.84 % | 10.75 % | 11.15 % | 12.38 % |
Industrials | 8.81 % | 6.02 % | 7.60 % | 7.46 % | 5.22 % | 8.29 % | 9.97 % |
Information Technology | 25.47 % | 27.72 % | 31.64 % | 27.96 % | 39.88 % | 31.31 % | 28.50 % |
Materials | 2.65 % | 3.42 % | 2.28 % | 2.70 % | 1.53 % | 2.03 % | 2.26 % |
Real Estate | 0.40 % | 0.24 % | 0.24 % | 0.21 % | 0.35 % | 0.40 % | 0.25 % |
Communication Services | 12.12 % | 16.03 % | 12.23 % | 14.21 % | 16.67 % | 8.37 % | 5.44 % |
Utilities | 0.36 % | 0.41 % | 0.08 % | 0.25 % | 0.79 % | 0.33 % | 0.31 % |
TOTAL | 100.00 % | 100.00 % | 100.00 % | 100.00 % | 100.00 % | 100.00 % | 100.00 % |
S&P Dow Jones Indices | ||||||||||
S&P 500 20 LARGEST Q1 2022 BUYBACKS, $ MILLIONS | ||||||||||
Company | Ticker | Sector | Q1 2022 | Q4 2021 | Q1 20221 | 12-Months | 12-Months | 5-Year | 10-Year | Indicated |
Buybacks | Buybacks | Buybacks | Mar,'22 | Mar,'21 | Buybacks | Buybacks | Dividend | |||
$ Million | $ Million | $ Million | $ Million | $ Million | $ Million | $ Million | $ Million | |||
Apple | AAPL | Information Technology | ||||||||
Alphabet | GOOGL | Communication Services | ||||||||
Meta Platforms | FB | Communication Services | ||||||||
Microsoft | MSFT | Information Technology | ||||||||
S&P Global | SPGI | Financials | ||||||||
Amgen | AMGN | Health Care | ||||||||
Wells Fargo | WFC | Financials | ||||||||
Bristol-Myers Squibb | BMY | Health Care | ||||||||
Lowe's Companies | LOW | Consumer Discretionary | ||||||||
Morgan Stanley | MS | Financials | ||||||||
Charter Communications | CHTR | Communication Services | ||||||||
Broadcom | AVGO | Information Technology | ||||||||
Comcast | CMCSA | Communication Services | ||||||||
Union Pacific | UNP | Industrials | ||||||||
Berkshire Hathaway | BRK.b | Financials | ||||||||
Citigroup | C | Financials | ||||||||
Visa | V | Information Technology | ||||||||
Marathon Petroleum | MPC | Energy | ||||||||
Adobe | ADBE | Information Technology | ||||||||
Amazon.com | AMZN | Consumer Discretionary | ||||||||
Top 20 | ||||||||||
S&P 500 | ||||||||||
Top 20 % of S&P 500 | 42.06 % | 40.78 % | 55.12 % | 41.19 % | 54.87 % | 34.32 % | 26.52 % | 13.65 % | ||
Gross values are not adjusted for float | ||||||||||
S&P Dow Jones Indices | ||||
S&P 500 Q1 2022 Buyback Report | ||||
SECTOR | DIVIDEND | BUYBACK | COMBINED | |
YIELD | YIELD | YIELD | ||
Consumer Discretionary | 2.28 % | 3.17 % | 5.45 % | |
Consumer Staples | 1.58 % | 2.57 % | 4.15 % | |
Energy | 2.08 % | 1.86 % | 3.93 % | |
Financials | 1.52 % | 3.41 % | 4.93 % | |
HealthCare | 2.01 % | 2.12 % | 4.13 % | |
Industrials | 1.68 % | 1.55 % | 3.23 % | |
Information Technology | 1.65 % | 3.86 % | 5.51 % | |
Materials | 1.25 % | 1.61 % | 2.86 % | |
Real Estate | 0.72 % | 0.10 % | 0.82 % | |
Communications Services | 0.75 % | 5.59 % | 6.34 % | |
Utilities | 2.19 % | 0.18 % | 2.38 % | |
S&P 500 | 1.63 % | 2.74 % | 4.36 % | |
Uses full values (unadjusted for float) | ||||
Dividends based on indicated; buybacks based on the last 12-months ending Q1,'22 | ||||
Share Count Changes | ||
(Y/Y diluted shares used for EPS) | >= | <=- |
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 % |
Q3 2019 | 8.62 % | 22.85 % |
Q2 2019 | 7.98 % | 24.15 % |
Q1 2019 | 8.03 % | 24.90 % |
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april.kabahar@spglobal.com
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(+1) 973 769 2306
howard.silverblatt@spglobal.com
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SOURCE S&P Dow Jones Indices