Press Releases
NEW YORK, Dec. 23, 2014 /PRNewswire/ -- S&P Dow Jones Indices announced today that preliminary results show that S&P 500® third quarter 2014 stock buybacks, or share repurchases, increased 25.0% to $145.2 billion up from the $116.2 billion spent on share repurchases during the second quarter of this year. The $145.2 billion Q3 spend represents a 13.3% increase from the $128.2 billion spent during the third quarter of 2013.
"Share count reductions continue to add a tailwind to EPS," says Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "While third quarter expenditures were up 25%, the number of companies reducing their share count declined 13%. Still, over half of the S&P 500 issues reduced their share count with 20% decreasing them enough to impact their year-over-year EPS by at least 4%."
According to S&P Dow Jones Indices, for the 12 months ending September 2014, S&P 500 issues increased their buyback expenditures by 23.5% to $550.1 billion over the $445.3 billion posted during the corresponding twelve month period in 2013. The twelve-month high mark was reached in fiscal year 2007, when companies spent $589.1 billion. The twelve-month recession low point was $137.6 billion, recorded in fiscal year 2009.
Silverblatt notes that the larger buyback expenditures were needed this quarter to offset issuance for shares used for employee options and M&A. For the third quarter of 2014, companies increased their overall spending on buybacks to compensate for the higher issuance as well as the 4% increase (in the third quarter) of the average daily stock price. The net change is lower share counts and higher EPS, but not a substantial growth in the number of issues executing a share count reduction.
S&P Dow Jones Indices' data show that fewer companies reduced their share count this quarter than last, with 257 doing so in Q3, down from 295 in Q2 and 276 in Q3 2014. Significant changes (generally considered 1% or greater for the quarter) continued to strongly favor reductions, but were down, as 101 issues reduced their share count by at least 1%. Share reduction change impacts of at least 4% (Q3 2014 over Q3 2013), which can be seen in EPS comparisons, were 99 in Q3 2014 down from the prior quarter's 116 but up from the Q3 2013's 56.
Silverblatt also notes that companies continue to increase their total shareholders' returns through regular cash dividends, as well as buybacks. Over the year ended September 2014, buyback and dividend expenditures combined reached a new record high of $892.7 billion, with buybacks representing 62.0% of the total.
"Q3 required more of a commitment by companies via buybacks to negate issuance and reduce share count," adds Silverblatt. "Q4 would appear to continue this trend, but might require more of an expenditure requirement to meet issuance, and even more if companies wish to add a stronger tail wind for their Q4 EPS."
"Share prices have been volatile for the period, but are still averaging 1.2% higher than Q3," adds Silverblatt. "At this point, given the cash reserves and pressure on boards to protect and enhance their EPS, we expect that Q4 will be an active quarter for buybacks resulting in a 20% year-over-year- gain."
On a sector basis, Information Technology increased its buyback dominance as it now represents 29.6% (up from last quarter's 26.3%) of all S&P 500 buybacks, as the sector increased its expenditure 40.4%. Apple led the S&P 500 with its $17 billion expenditure, which ranked second highest in index history – with Apple's Q1 2014 $18 billion purchase being number one.
All data in this press release should be sourced to: S&P Dow Jones Indices. Historical S&P 500 buyback data can be found at: www.spindices.com/indices/equity/sp-500.
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S&P Dow Jones Indices |
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S&P 500, $ U.S. BILLIONS, preliminary values in bold |
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|
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 |
|
|
9/30/2014 Prelim. |
$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 |
|
12/31/2012 |
$12,742 |
$206.84 |
$184.50 |
$79.83 |
$99.15 |
2.20% |
3.13% |
5.33% |
$178.98 |
|
9/30/2012 |
$12,881 |
$214.58 |
$189.64 |
$69.48 |
$103.72 |
2.07% |
3.01% |
5.08% |
$173.20 |
|
6/30/2012 |
$12,303 |
$229.69 |
$195.27 |
$67.31 |
$111.75 |
2.08% |
3.27% |
5.35% |
$179.05 |
|
3/31/2012 |
$12,730 |
$219.09 |
$208.15 |
$64.07 |
$84.29 |
1.95% |
3.14% |
5.09% |
$148.37 |
|
12/31/2011 |
$11,385 |
$214.83 |
$186.85 |
$65.89 |
$87.59 |
2.11% |
3.56% |
5.67% |
$153.47 |
|
09/30/2011 |
$10,303 |
$230.30 |
$206.08 |
$59.20 |
$118.41 |
2.22% |
3.92% |
6.14% |
$177.61 |
|
6/30/2011 |
$12,021 |
$226.29 |
$202.44 |
$59.03 |
$109.24 |
1.84% |
3.04% |
4.88% |
$168.27 |
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3/31/2011 |
$12,068 |
$205.34 |
$195.15 |
$56.08 |
$89.84 |
1.76% |
2.76% |
4.52% |
$145.91 |
|
12/31/2010 |
$11,430 |
$199.40 |
$187.67 |
$54.85 |
$86.36 |
1.80% |
2.61% |
4.42% |
$141.21 |
|
09/30/2010 |
$10,336 |
$195.28 |
$176.80 |
$51.26 |
$79.56 |
1.94% |
2.52% |
4.45% |
$130.81 |
|
06/30/2010 |
$9,323 |
$189.04 |
$178.00 |
$50.44 |
$77.64 |
2.10% |
2.31% |
4.41% |
$128.08 |
|
03/31/2010 |
$10,560 |
$175.00 |
$157.85 |
$49.28 |
$55.26 |
1.83% |
1.54% |
3.36% |
$104.54 |
|
12/31/2009 |
$9,928 |
$152.77 |
$135.14 |
$49.04 |
$47.82 |
1.97% |
1.39% |
3.36% |
$96.86 |
|
09/30/2009 |
$9,337 |
$139.37 |
$130.37 |
$47.21 |
$34.85 |
2.24% |
1.48% |
3.71% |
$82.06 |
|
06/30/2009 |
$8,045 |
$120.85 |
$118.22 |
$47.63 |
$24.20 |
2.77% |
2.40% |
5.17% |
$71.83 |
|
03/31/2009 |
$6,928 |
$87.78 |
$65.29 |
$51.73 |
$30.78 |
3.43% |
3.70% |
7.13% |
$82.51 |
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12/31/2008 |
$7,852 |
-$0.78 |
-$202.11 |
$62.19 |
$48.12 |
3.15% |
4.33% |
7.48% |
$110.31 |
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09/30/2008 |
$10,181 |
$142.90 |
$86.16 |
$61.44 |
$89.71 |
2.48% |
4.26% |
6.73% |
$151.15 |
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S&P Dow Jones Indices |
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S&P 500 20 LARGEST Q3 2014 BUYBACKS, $ MILLIONS |
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Company |
Ticker |
Sector |
Q3,'14 |
12 Mo Sep,'14 |
Indicated |
SCR |
SCR |
|
Buybacks |
Buybacks |
Dividend |
Q3,'14/ |
Q3,'14/ |
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|
$ Mil |
$ Mil |
$ Mil |
Q2,'14 |
Q3,'13 |
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Apple |
AAPL |
Information Technology |
$17,000 |
$32,910 |
$11,257 |
-1.32% |
-6.16% |
|
Monsanto |
MON |
Materials |
$6,168 |
$1,431 |
$949 |
-4.64% |
-4.95% |
|
Intel |
INTC |
Information Technology |
$4,182 |
$4,009 |
$4,456 |
-1.52% |
-1.08% |
|
Exxon Mobil |
XOM |
Energy |
$3,002 |
$13,209 |
$11,771 |
-0.63% |
-2.88% |
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Microsoft |
MSFT |
Information Technology |
$2,888 |
$7,316 |
$10,217 |
0.07% |
-0.98% |
|
Merck |
MRK |
Health Care |
$2,670 |
$3,824 |
$5,192 |
-1.29% |
-1.66% |
|
Caterpillar |
CAT |
Industrials |
$2,500 |
$2,738 |
$1,758 |
-2.43% |
-4.46% |
|
Wells Fargo |
WFC |
Financials |
$2,490 |
$7,497 |
$7,309 |
-0.76% |
-1.32% |
|
Johnson & Johnson |
JNJ |
Health Care |
$2,415 |
$5,504 |
$7,897 |
-0.34% |
-0.59% |
|
Procter & Gamble |
PG |
Consumer Staples |
$2,378 |
$6,005 |
$6,971 |
-0.13% |
-1.24% |
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Home Depot |
HD |
Consumer Discretionary |
$2,078 |
$7,700 |
$2,530 |
-1.40% |
-5.86% |
|
Oracle |
ORCL |
Information Technology |
$2,000 |
$9,813 |
$2,138 |
-0.46% |
-2.70% |
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International Business Machines |
IBM |
Information Technology |
$1,700 |
$15,880 |
$4,389 |
-9.20% |
|
|
Gilead Sciences |
GILD |
Health Care |
$1,698 |
$2,150 |
$0 |
-1.68% |
-3.27% |
|
Time Warner |
TWX |
Consumer Discretionary |
$1,605 |
$3,177 |
$1,086 |
-7.31% |
|
|
American International Group |
AIG |
Financials |
$1,554 |
$2,446 |
$713 |
-1.54% |
-2.91% |
|
JPMorgan Chase |
JPM |
Financials |
$1,489 |
$2,800 |
$6,018 |
-0.62% |
0.58% |
|
Walt Disney Company |
DIS |
Consumer Discretionary |
$1,440 |
$6,480 |
$1,974 |
-0.80% |
-3.93% |
|
Cisco Systems |
CSCO |
Information Technology |
$1,430 |
$9,843 |
$3,875 |
-0.31% |
-5.05% |
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Yahoo! |
YHOO |
Information Technology |
$1,382 |
$3,085 |
$0 |
-0.69% |
-3.26% |
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Top 20 |
$62,069 |
$147,817 |
$90,501 |
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S&P 500 |
$145,193 |
$532,099 |
$378,840 |
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Top 20% of S&P 500 |
42.75% |
27.78% |
23.89% |
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SCR - Share Count Reduction in average weighted diluted share count used for EPS |
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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 SECTOR BUYBACKS |
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SECTOR $ MILLIONS |
Q3,'14 |
Q2,'14 |
Q3,'13 |
12MO SEP,'14 |
12 MO SEP,'13 |
5-YEARS |
|
Consumer Discretionary |
$21,327 |
$18,969 |
$22,962 |
$76,987 |
$67,078 |
$316,111 |
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Consumer Staples |
$9,970 |
$8,529 |
$11,033 |
$41,839 |
$43,761 |
$231,955 |
|
Energy |
$8,810 |
$8,716 |
$11,981 |
$42,853 |
$37,141 |
$176,120 |
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Financials |
$20,441 |
$17,330 |
$15,748 |
$72,110 |
$53,460 |
$238,401 |
|
Healthcare |
$13,930 |
$15,221 |
$15,789 |
$59,491 |
$59,047 |
$288,635 |
|
Industrials |
$16,498 |
$12,662 |
$14,171 |
$67,414 |
$49,100 |
$201,927 |
|
Information Technology |
$42,906 |
$30,569 |
$32,115 |
$157,185 |
$109,742 |
$501,398 |
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Materials |
$10,866 |
$3,772 |
$1,909 |
$27,070 |
$7,684 |
$51,678 |
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Telecommunication Services |
$286 |
$324 |
$2,302 |
$4,403 |
$17,034 |
$31,016 |
|
Utilities |
$158 |
$79 |
$146 |
$702 |
$1,277 |
$9,613 |
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TOTAL |
$145,193 |
$116,171 |
$128,158 |
$550,053 |
$445,323 |
$2,046,854 |
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SECTOR BUYBACK MAKEUP % |
Q3,'14 |
Q2,'14 |
Q3,'13 |
12MO SEP,'14 |
12 MO SEP,'13 |
5-YEARS |
|
Consumer Discretionary |
14.69% |
16.33% |
17.92% |
14.00% |
15.06% |
15.44% |
|
Consumer Staples |
6.87% |
7.34% |
8.61% |
7.61% |
9.83% |
11.33% |
|
Energy |
6.07% |
7.50% |
9.35% |
7.79% |
8.34% |
8.60% |
|
Financials |
14.08% |
14.92% |
12.29% |
13.11% |
12.00% |
11.65% |
|
Healthcare |
9.59% |
13.10% |
12.32% |
10.82% |
13.26% |
14.10% |
|
Industrials |
11.36% |
10.90% |
11.06% |
12.26% |
11.03% |
9.87% |
|
Information Technology |
29.55% |
26.31% |
25.06% |
28.58% |
24.64% |
24.50% |
|
Materials |
7.48% |
3.25% |
1.49% |
4.92% |
1.73% |
2.52% |
|
Telecommunication Services |
0.20% |
0.28% |
1.80% |
0.80% |
3.83% |
1.52% |
|
Utilities |
0.11% |
0.07% |
0.11% |
0.13% |
0.29% |
0.47% |
|
TOTAL |
100.00% |
100.00% |
100.00% |
100.00% |
100.00% |
100.00% |
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S&P Dow Jones Indices |
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S&P 500 20 LARGEST QUARTERLY BUYBACKS, $ MILLIONS, as of Q3 2014 |
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$ MILLIONS |
QUARTER |
COMPANY |
SECTOR |
|
$17,971 |
Q1 2014 |
Apple |
Information Technology |
|
$17,000 |
Q3 2014 |
Apple |
Information Technology |
|
$16,000 |
Q2 2013 |
Apple |
Information Technology |
|
$15,707 |
Q2 2007 |
International Business Machines |
Information Technology |
|
$12,852 |
Q2 2012 |
Johnson & Johnson |
Healthcare |
|
$12,183 |
Q3 2012 |
Johnson & Johnson |
Healthcare |
|
$10,723 |
Q3 2007 |
Home Depot |
Consumer Discretionary |
|
$9,859 |
Q4 2007 |
Transocean |
Energy |
|
$9,179 |
Q4 2006 |
Exxon Mobil |
Energy |
|
$9,465 |
Q1 2008 |
Exxon Mobil |
Energy |
|
$8,845 |
Q4 2008 |
Exxon Mobil |
Energy |
|
$8,761 |
Q2 2008 |
Exxon Mobil |
Energy |
|
$8,663 |
Q3 2008 |
Exxon Mobil |
Energy |
|
$8,463 |
Q3 2007 |
Exxon Mobil |
Energy |
|
$8,166 |
Q1 2014 |
International Business Machines |
Information Technology |
|
$8,000 |
Q3 2012 |
American International Group |
Financials |
|
$7,985 |
Q3 2006 |
Exxon Mobil |
Energy |
|
$7,938 |
Q4 2007 |
Exxon Mobil |
Energy |
|
$7,852 |
Q1 2009 |
Exxon Mobil |
Energy |
|
$7,788 |
Q1 2007 |
Exxon Mobil |
Energy |
|
$213,400 |
TOP 20 |
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S&P Dow Jones Indices |
Cash and equivalents (cash) are |
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S&P 500 INDUSTRIAL (OLD) CASH AND EQUIVALENT LEVELS |
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DATE |
CASH & |
% HELD |
% SHORT-TERM |
CASH % |
LTD % OF |
CASH % OF |
||||
|
EQUIVALENT |
AS CASH |
SECURITIES |
OF LTD |
MARKET |
MARKET |
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$ MILLIONS |
VALUE |
VALUE |
||||||||
|
9/30/2014 Prelim. |
$1,246,063 |
58.01% |
41.99% |
48.91% |
20.26% |
9.91% |
||||
|
6/30/2014 |
$1,249,892 |
54.06% |
45.94% |
49.60% |
17.22% |
8.54% |
||||
|
3/31/2014 |
$1,233,070 |
58.63% |
41.37% |
49.49% |
17.86% |
8.84% |
||||
|
12/31/2013 |
$1,304,447 |
61.84% |
38.16% |
53.21% |
17.68% |
9.41% |
||||
|
9/30/2013 |
$1,245,790 |
60.36% |
39.64% |
55.46% |
19.09% |
10.59% |
||||
|
6/30/2013 |
$1,143,837 |
58.30% |
41.70% |
59.95% |
16.02% |
9.60% |
||||
|
3/31/2013 |
$1,093,516 |
60.14% |
39.86% |
58.76% |
15.91% |
9.35% |
||||
|
12/31/2012 |
$1,091,310 |
63.39% |
36.61% |
53.21% |
18.94% |
10.08% |
||||
|
9/30/2012 |
$1,030,442 |
64.20% |
35.80% |
58.93% |
15.93% |
9.39% |
||||
|
6/30/2012 |
$985,375 |
63.89% |
36.11% |
55.00% |
17.26% |
9.49% |
||||
|
3/31/2012 |
$1,013,187 |
65.98% |
34.02% |
50.96% |
18.36% |
9.36% |
||||
|
12/31/2011 |
$1,027,296 |
68.14% |
31.86% |
52.40% |
20.39% |
10.69% |
||||
|
9/30/2011 |
$998,581 |
64.66% |
35.34% |
52.56% |
21.85% |
11.48% |
||||
|
6/30/2011 |
$976,061 |
65.01% |
34.99% |
59.05% |
17.32% |
10.23% |
||||
|
3/31/2011 |
$963,314 |
67.28% |
32.72% |
52.62% |
18.39% |
9.68% |
||||
|
12/31/2010 |
$940,149 |
65.48% |
34.52% |
51.68% |
20.24% |
10.46% |
||||
|
09/30/2010 |
$902,389 |
65.51% |
33.55% |
48.79% |
20.19% |
9.85% |
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About S&P Dow Jones Indices
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