S&P 500 Q3 2017 Buybacks Increase 7.5% to $129.2 Billion
- Buybacks fall 5.3% for the 12-month year-over-year period
- EPS support via discretionary share count reductions stabilize at lower level
- Cash reserves jump, set another record

NEW YORK, Dec. 13, 2017 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") today announced preliminary results indicating that S&P 500® stock buybacks, or share repurchases, totaled $129.2 billion for Q3 2017. This is a 7.5% increase from the $120.1 billion reported for Q2 2017 and a 15.2% increase from the $112.2 billion reported for Q3 2016.

For the 12-month period ending September 2017, S&P 500 issues spent $517.7 billion on buybacks, down 5.3% from $547.0 billion for the 12-month period ending September 2016.

Historical data on S&P 500 buybacks is available at: www.spdji.com/indices/equity/sp-500

Key Takeaways:

  • The number of S&P 500 issues substantially reducing their year-over-year share count slightly increased to 14.2% for Q3 2017, compared to 14.0% for Q2 2017 and 23.7% for Q3 2016.
  • Total shareholder return totaled $234.6 billion, up 4.7% from $224.1 billion for Q2 2017.
  • S&P 500 dividends set a new record payment, at $105.4 billion, compared to $104.0 billion for Q2 2017.
  • For the 12-month period ending September 2017, total shareholder return was $931.9 billion, down 0.8% from $939.8 billion for the 12-month period ending September 2016.
  • 274 S&P 500 issues reduced their share count for Q3 2017, compared to 268 for Q2 2017 and 257 for Q3 2016.
  • Year-over-year share count reductions of at least 4%, which are seen as affecting EPS, increased to 70 issues for Q3 2017, compared to 66 for Q2 2017 and 117 for Q3 2016.

"Buyback expenditures for Q3 2017 increased slightly more than share prices, even though the EPS tailwind remains weaker than recent history," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices.

"For the last two years, more than 20% of S&P 500 issues provided at least a 4% tailwind to EPS via significantly-reduced share counts. For 2017, that rate has stabilized closer to 14%. Earnings, which set a record in Q3 2017, are expected to rise again during Q4 and appear stable due to improvements in both profit margins and sales."

Buyback concentration increased for the quarter. The top 20 issues accounted for 45.5% ($58.8 billion) of all share repurchases, up from 38.6% ($46.4 billion) for Q2 2017 and 42.3% ($47.5 billion) for Q3 2016.

GICS® Sector Analysis:

Consumer Staples buybacks surged 51.3% to $15.6 billion, up from $10.3 billion for Q2 2017.

Financials posted a strong 27.7% increase to $34.3 billion, spending the most of any sector and representing 26.5% of all buybacks. The sector appears committed to fulfilling their share repurchase programs. 

Information Technology expenditures rose 1.1% to $27.9 billion, compared to $27.6 billion for Q2 2017. The sector represents 21.6% of all buybacks but has 46% of the index's cash reserves.

Issues:

Apple (AAPL) spent $7.8 billion for Q3 2017, up from $7.1 billion for Q2 2017 and $6.0 billion for Q3 2016; the issue spent the most of any issue for the quarter.

Citigroup (C) was second, with $5.4 billion, up from $1.8 billion for Q2 2017 and $2.5 billion for Q3 2016.

J. P. Morgan (JPM) was third, with $4.8 billion, up from $3.0 billion for Q2 2017 and $2.3 billion for Q3 2016.

Walgreens Boots Alliance (WBA) came in fourth, with $3.8 billion, up from $1.0 billion for Q2 2017 and none for Q3 2016.

Charter Communications (CHTR) rounded out the top five, at $3.5 billion, up from $3.3 billion in Q2 2017 and $0.3 billion for Q3 2016.

Total Shareholder Return:

Silverblatt determined that total shareholder return, through regular cash dividends and buybacks, increased 4.7% to $234.6 billion for Q3 2017, up from $224.1 billion for Q2 2017. For the 12-month period ending September 2017, shareholder return totaled $931.9 billion, down 0.8% from $939.8 billion for the 12-month period ending September 2016.

Dividends posted a 1.4% increase for Q3 2017, to a record $105.4 billion, up from $104.0 billion for Q2 2017. Payments totaled $414.1 billion for the 12-month period ending September 2017, up 5.3% from $392.8 billion for the 12-month period ending September 2016. With Q4 2017 nearing its end, the quarter is expected to post another record for cash dividend payments, even as General Electric (GE) reduced its annual rate by 50% ($4.2 billion).

According to Silverblatt, preliminary cash reserves increased from Q2 2017. S&P 500 Industrial (Old), which consists of the S&P 500 less Financials, Transportations, Real Estate and Utilities, available cash and equivalent surpassed $1.6 trillion for the first time, standing at $1.630 trillion. Available cash stood at $1.534 trillion for Q2 2017 and $1.487 trillion for Q3 2016.

"While the current quarter ticked up, the pace of both buyback and dividend growth has been waning," said Silverblatt.  

"Record-level cash reserves could reach shareholders, with the current belief being that buybacks would benefit more than dividends. Dividends are a pure cash-flow item and are considered longer-term events than buybacks; once increased, a dividend cut usually solicits a negative market reaction."

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 Months Sep 2017

$21,579

$1,017.52

$918.75

$414.13

$517.72

1.92%

2.40%

4.32%

12 Months Sep 2016

$18,742

$881.68

$774.38

$392.79

$546.97

2.10%

2.92%

5.01%

2016

$19,268

$919.85

$818.55

$397.21

$536.38

2.06%

2.78%

4.85%

2015

$17,900

$885.38

$762.74

$382.32

$572.16

2.14%

3.20%

5.33%

2014

$18,245

$1,004.22

$909.09

$350.43

$553.28

1.92%

3.03%

4.95%










9/29/2017 Prelim.

$21,579

$268.69

$243.77

$105.45

$129.17

1.92%

2.40%

4.32%

6/30/2017

$20,762

$261.39

$231.40

$104.01

$120.11

1.96%

2.41%

4.37%

3/31/2017

$20,276

$247.32

$235.65

$100.86

$133.15

1.98%

2.51%

4.49%

12/31/2016

$19,268

$240.11

$207.93

$103.82

$135.29

2.06%

2.78%

4.85%

9/30/2016

$18,742

$247.98

$219.46

$98.43

$112.20

2.10%

2.92%

5.01%

6/30/2016

$18,193

$222.77

$201.79

$98.30

$127.50

2.14%

3.22%

5.36%

3/31/2016

$17,958

$208.99

$189.37

$96.67

$161.39

2.15%

3.28%

5.43%

12/31/2015

$17,900

$201.95

$163.76

$99.39

$145.88

2.14%

3.20%

5.33%

9/30/2015

$16,917

$224.14

$204.58

$95.07

$150.58

2.22%

3.30%

5.52%

6/30/2015

$18,219

$230.84

$201.35

$94.45

$131.56

2.03%

3.04%

5.07%

3/31/2015

$18,303

$228.45

$193.05

$93.41

$144.13

1.98%

2.94%

4.92%

12/30/2014

$18,245

$237.14

$202.31

$92.80

$132.63

1.92%

3.03%

4.95%

9/30/2014

$17,519

$262.92

$244.00

$89.02

$145.19

1.96%

3.14%

5.10%

6/30/2014

$17,404

$260.50

$240.96

$86.65

$116.17

1.91%

3.06%

4.98%

3/31/2014

$16,700

$243.67

$221.82

$81.96

$159.28

1.93%

3.20%

5.14%

12/31/2013

$16,495

$252.10

$236.31

$84.98

$129.41

1.89%

2.88%

4.77%

9/30/2013

$14,960

$239.50

$219.13

$79.26

$128.16

2.05%

2.98%

5.03%

6/30/2013

$14,310

$234.84

$221.56

$76.67

$118.05

2.07%

2.94%

5.02%

3/31/2013

$13,979

$229.57

$215.76

$70.86

$99.97

2.06%

2.97%

5.02%

12/31/2012

$12,742

$206.84

$184.50

$79.83

$99.15

2.20%

3.13%

5.33%

9/30/2012

$12,881

$214.58

$189.64

$69.48

$103.72

2.07%

3.01%

5.08%

 

 

S&P Dow Jones Indices







S&P 500 SECTOR BUYBACKS







SECTOR $ MILLIONS

Q3,'17

Q2,'17

Q3,'16

12MO SEP','17

12MO SEP,'16

5-YEARS








Consumer Discretionary

$24,242

$22,357

$21,970

$83,398

$91,873

$411,266

Consumer Staples

$15,578

$10,296

$8,397

$51,957

$48,219

$226,089

Energy

$2,320

$3,107

$1,344

$8,513

$7,369

$118,850

Financials

$34,252

$26,815

$25,213

$117,336

$102,603

$434,418

Healthcare

$9,523

$12,636

$13,089

$78,066

$75,146

$340,717

Industrials

$13,087

$14,799

$13,267

$56,771

$81,220

$330,327

Information Technology

$27,926

$27,628

$25,978

$111,762

$126,243

$651,789

Materials

$1,412

$1,020

$2,228

$6,287

$12,232

$67,469

Real Estate

$806

$1,150

$456

$2,833

$456

$3,289

Telecommunication Services

$3

$282

$247

$545

$1,007

$28,756

Utilities

$22

$20

$15

$250

$602

$6,008

TOTAL

$129,170

$120,109

$112,203

$517,720

$546,970

$2,618,978

 

 

S&P Dow Jones Indices









S&P 500 20 LARGEST Q3 2017 BUYBACKS, $ MILLIONS 







Company  

Ticker

Sector

Q3,'17

12MO Sep,'17

12MO Sep,'16

5-Year

10-year

Indicated




Buybacks

Buybacks

Buybacks

Buybacks

Buybacks

Dividend




$ Million

$ Million

$ Million

$ Million

$ Million

$ Million

Apple

AAPL

Information Technology

$7,795

$32,900

$29,722

$165,735

$165,735

$13,139

Citigroup

C

Financials

$5,437

$13,599

$7,135

$27,989

$29,760

$0

JPMorgan 

JPM

Financials

$4,763

$12,853

$8,050

$34,849

$48,583

$7,958

Walgreens 

WBA

Consumer Staples

$3,763

$5,220

$1,152

$8,918

$14,466

$4,256

Charter Communications

CHTR

Consumer Discretionary

$3,525

$8,862

$462

$9,389

$10,132

$3,428

Walt Disney 

DIS

Consumer Discretionary

$3,424

$9,368

$7,499

$33,576

$48,844

$2,467

Bank of America 

BAC

Financials

$2,981

$9,275

$4,581

$20,326

$20,470

$1,185

Wells Fargo 

WFC

Financials

$2,609

$9,473

$8,542

$40,829

$50,429

$7,796

Microsoft 

MSFT

Information Technology

$2,570

$9,996

$15,574

$55,814

$104,255

$6,150

 Procter & Gamble 

PG

Consumer Staples

$2,502

$5,203

$4,004

$22,369

$55,321

$4,777

Boeing 

BA

Industrials

$2,500

$8,000

$7,251

$29,054

$32,999

$9,051

Wal-Mart Stores

WMT

Consumer Staples

$2,209

$8,700

$8,646

$29,707

$61,775

$3,524

Goldman Sachs Group 

GS

Financials

$2,174

$6,631

$6,180

$28,524

$46,594

$12,044

 Home Depot

HD

Consumer Discretionary

$2,146

$8,412

$6,492

$36,147

$45,724

$1,219

McDonald's

MCD

Consumer Discretionary

$2,082

$5,446

$11,207

$26,565

$42,974

$0

Cisco Systems

CSCO

Information Technology

$2,028

$4,908

$4,298

$28,184

$59,149

$5,133

Comcast

CMCSA

Consumer Discretionary

$1,736

$5,450

$5,041

$23,262

$33,668

$5,637

Visa 

V

Information Technology

$1,724

$6,967

$7,249

$26,867

$46,693

$2,982

General Motors (GM)

GM

Consumer Discretionary

$1,498

$2,497

$2,133

$18,331

$19,793

$1,181

American Express

AXP

Financials

$1,320

$4,041

$4,692

$21,434

$27,535

$5,800

Top 20   



$58,786

$177,801

$149,910

$687,869

$964,899

$97,726

S&P 500



$129,170

$517,720

$546,970

$2,618,978

$4,241,640

$438,849

Top 20 % of S&P 500



45.51%

34.34%

27.41%

26.26%

22.75%

22.27%

   Gross values are not adjusted for float







 

 

S&P Dow Jones Indices




S&P 500 20 Largest Quarterly Buybacks, $ Millions, as of Q3 2017, no issues added for Q3 2017

$ MILLIONS

QUARTER

COMPANY

SECTOR


$17,971

Q1 2014

Apple

Information Technology

1

$17,000

Q3 2014

Apple

Information Technology

2

$16,000

Q2 2013

Apple

Information Technology

3

$15,707

Q2 2007

International Business Machines 

Information Technology

4

$13,253

Q3 2015

Apple

Information Technology

5

$12,852

Q2 2012

Johnson & Johnson 

Healthcare

6

$12,318

Q4 2016

Allergan plc (AGN)

Healthcare

7

$12,183

Q3 2012

Johnson & Johnson 

Healthcare

8

$10,851

Q4 2016

Apple

Information Technology

9

$10,723

Q3 2007

Home Depot

Consumer Discretionary

10

$10,166

Q2 2016

Apple

Information Technology

11

$10,000

Q2 2015

Apple

Information Technology

12

$9,859

Q4 2007

Transocean

Energy

13

$9,179

Q4 2006

Exxon Mobil 

Energy

14

$9,465

Q1 2008

Exxon Mobil 

Energy

15

$8,845

Q4 2008

Exxon Mobil 

Energy

16

$8,761

Q2 2008

Exxon Mobil 

Energy

17

$8,663

Q3 2008

Exxon Mobil 

Energy

18

$8,463

Q3 2007

Exxon Mobil 

Energy

19

$8,166

Q1 2014

International Business Machines 

Information Technology

20

$230,425


TOP 20








$7,795

Q3 2017

Apple 

Information Technology

27

$5,437

Q3 2017

Citigroup

Financials

49

 

S&P Dow Jones Indices





S&P 500 Q3 2017 Buyback Report









SECTOR

DIVIDEND

BUYBACK 

COMBINED



YIELD

YIELD

YIELD


Consumer Discretionary

1.44%

3.08%

4.52%


Consumer Staples

3.05%

2.84%

5.88%


Energy

2.89%

0.65%

3.54%


Financials

1.77%

3.44%

5.20%


HealthCare

1.67%

2.56%

4.24%


Industrials

1.91%

2.53%

4.44%


Information Technology

1.40%

2.21%

3.61%


Materials

1.96%

0.99%

2.95%


Real Estate

3.41%

0.48%

3.89%


Telecommunication Services

5.25%

0.13%

5.38%


Utilities

3.40%

0.04%

3.44%


S&P 500

1.99%

2.35%

4.35%


   Uses full values (unadjusted for float)




   Dividends based on indicated; buybacks based on the last 12-months ending Q3,'17

 

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SOURCE S&P Dow Jones Indices