PR Newswire
NEW YORK, Sept. 12, 2023
NEW YORK, Sept. 12, 2023 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") announced today preliminary S&P 500® stock buybacks, or share repurchases, data for Q2 2023.
Historical data on S&P 500 buybacks are available at www.spdji.com/indices/equity/sp-500.
Key Takeaways:
"Companies broadly reduced their buybacks in Q2 2023, as concerns over banking and a slowing economy dominated. Companies with strong cash-flow led the buybacks, as the top 20 issues accounted for 52%. Financials pulled back 30.2% after restarting their buybacks in Q1 2023 and following their 2022 pullback. Energy, which represented 4.1% of the equity market, represented 10.4% of the buybacks; Exxon and Chevron ranked in the top five for the quarter. The EPS impact, due to share count reduction, also declined with the value of buybacks now being re-evaluated with respect to its cost-support tradeoff. Still, 16.3% of the issues increased their Q2 2023 EPS year-over-year by at least 4% compared to 18.5% last quarter," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "Going forward and given the market's expectations that higher interest rates will continue for longer and new banking regulations will be implemented, buyback expenditure in excess of option coverage will be challenged for all but the top-tier cash-flow issues. Notably, and potentially adding to the cost further is the ongoing budget discussions and quest for government income as the new 1% buyback tax appears to be an attractive target from both sides of the aisle to increase."
1% Buyback Excise Tax for 2023:
The new 1% excise tax on net buybacks reduced Q2 2023 operating earnings by 0.34%, down from the Q1 2023 0.45%, and down from the proforma 0.52% for Q2 2022 and the proforma 2022 0.51%. As reported GAAP earnings were reduced by 0.38%, down from the Q1 2023 0.49%, down from the proforma 0.57% for Q2 2022, and the proforma 2022 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. Given the initial 1% buyback tax had bipartisan support, there is an expectation that some increase and/or potential change to the type of buybacks that are taxed are on the table and will remain past the current budget discussions. 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 into corporate budgets, and therefore move much slower."
Q2 2023 GICS® Sector Analysis:
Information Technology regained the lead from Financials which took over the lead in Q1 2023 that Information Technology had held since Q3 2017. For Q2 2023 the sector increased their expenditure 2.6% to $47.1 billion, representing 26.9% of all S&P 500 buybacks. This is compared to the $45.9 billion spent in Q1 2023, representing 21.3% of all buybacks; for Q2 2022 the sector spent $72.0 billion, 65.5% higher. For the 12-month June period the sector spent $211.5 billion, down 25.7% from the prior period's $284.5 billion.
Financials pulled back for the quarter as concerns over banking and expected new regulations increased. The sector pulled back in Q2, Q3 and Q4 2022 over economic issues and to protect their dividends, but then started up again in Q1 2023. For Q2 2023, Financials spent $32.7 billion on buybacks, accounting for 18.7% of all S&P 500 buybacks, down from the Q1 2023 expenditure of $46.9 billion. This represented 21.8% of the buybacks, as they remained higher than the lowered $21.2 billion expenditure of Q2 2022, when they represented 9.7% of the buybacks. For the 12-month June 2023 period, Financials spent $125.2 billion, down from $189.3 billion for the 12-month June 2022 period. Given the current banking environment and planned new regulatory requirements, Financials may limit their current buybacks as they again look to protect their dividends.
Energy decreased their buybacks for the second quarter by 5.4% to $18.3 billion, representing 10.4% of the buybacks compared to the prior quarter's $19.3 billion, as the Q2 2023 quarter was an increase of 36.4% over Q2 2022's $13.4 billion level. For the 12-month period ending in June 2023, Energy spent $79.4 billion on buybacks, up 144% from the prior period's $32.5 billion.
Health Care buybacks decreased 42.2% for the quarter spending $13.4 billion in Q2 2023, representing 7.7% of all buybacks. This was down from the Q1 2023 $23.2 billion and Q2 2022's $17.2 billion. For the 12-month June period, the sector spent $81.1 billion, down 15.8% from prior 12-month period's $96.3 billion.
Of note, Real Estate significantly pulled back on their Q2 2023 buybacks to $71 million, down -86.5% from the Q1 2023 $526 million and down 93.7% from the Q2 2022 $1.127 billion.
Issues:
The five issues with the highest total buybacks for Q2 2023 are:
For more information about S&P Dow Jones Indices, please visit www.spdji.com.
S&P Dow Jones Indices | |||
S&P 500 proforma net buyback tax impact | |||
TAX | TAX % OF | TAX % OF | |
$ BILLIONS | OPERATING | AS REPORTED | |
Q2 2023 | $1.55 | 0.34 % | 0.38 % |
Q1 2023 | $1.98 | 0.45 % | 0.49 % |
2022 proforma | $8.47 | 0.51 % | 0.58 % |
2021 proforma | $7.93 | 0.45 % | 0.47 % |
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 Jun,'23 | $37,162 | $1,741.00 | $1,515.44 | $576.37 | $812.49 | 1.55 % | 2.19 % | 3.74 % |
12 Mo Jun,'22 | $31,903 | $1,733.78 | $1,626.26 | $542.09 | $1,005.39 | 1.70 % | 3.15 % | 4.85 % |
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 % |
6/30/2023 Prelim. | $37,162 | $457.43 | $406.33 | $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 % |
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 % |
S&P Dow Jones Indices | |||||||
S&P 500 SECTOR BUYBACKS | |||||||
SECTOR $ MILLIONS | Q2,'23 | Q1,'23 | Q2,'22 | 12MoJun,'23 | 12MoJun,'22 | 5-YEARS | 10-YEARS |
Consumer Discretionary | $17,664 | $18,301 | $27,639 | $74,326 | $107,319 | $360,087 | $789,347 |
Consumer Staples | $4,265 | $6,284 | $10,662 | $28,897 | $40,234 | $160,867 | $378,555 |
Energy | $18,253 | $19,304 | $13,383 | $79,404 | $32,523 | $153,128 | $266,420 |
Financials | $32,742 | $46,891 | $21,216 | $125,157 | $189,347 | $737,324 | $1,231,704 |
Healthcare | $13,408 | $23,194 | $17,201 | $81,148 | $96,345 | $399,404 | $775,551 |
Industrials | $12,585 | $14,239 | $17,834 | $66,340 | $76,414 | $303,400 | $650,413 |
Information Technology | $47,134 | $45,923 | $71,956 | $211,481 | $284,462 | $1,185,350 | $1,930,264 |
Materials | $3,154 | $3,773 | $8,726 | $19,152 | $30,657 | $91,190 | $160,471 |
Real Estate | $71 | $526 | $1,127 | $2,119 | $3,175 | $12,654 | $19,025 |
Communication Services | $25,371 | $35,797 | $29,441 | $122,620 | $142,045 | $453,001 | $467,623 |
Utilities | $279 | $1,299 | $453 | $1,844 | $2,869 | $13,685 | $19,172 |
TOTAL | $174,924 | $215,532 | $219,637 | $812,488 | $1,005,390 | $3,870,091 | $6,688,545 |
SECTOR BUYBACK MAKEUP % | Q2,'23 | Q1,'23 | Q2,'22 | 12MoJun,'23 | 12MoJun,'22 | 5-YEARS | 10-YEARS |
Consumer Discretionary | 10.10 % | 8.49 % | 12.58 % | 9.15 % | 10.67 % | 9.30 % | 11.80 % |
Consumer Staples | 2.44 % | 2.92 % | 4.85 % | 3.56 % | 4.00 % | 4.16 % | 5.66 % |
Energy | 10.43 % | 8.96 % | 6.09 % | 9.77 % | 3.23 % | 3.96 % | 3.98 % |
Financials | 18.72 % | 21.76 % | 9.66 % | 15.40 % | 18.83 % | 19.05 % | 18.42 % |
Healthcare | 7.66 % | 10.76 % | 7.83 % | 9.99 % | 9.58 % | 10.32 % | 11.60 % |
Industrials | 7.19 % | 6.61 % | 8.12 % | 8.17 % | 7.60 % | 7.84 % | 9.72 % |
Information Technology | 26.95 % | 21.31 % | 32.76 % | 26.03 % | 28.29 % | 30.63 % | 28.86 % |
Materials | 1.80 % | 1.75 % | 3.97 % | 2.36 % | 3.05 % | 2.36 % | 2.40 % |
Real Estate | 0.04 % | 0.24 % | 0.51 % | 0.26 % | 0.32 % | 0.33 % | 0.28 % |
Communication Services | 14.50 % | 16.61 % | 13.40 % | 15.09 % | 14.13 % | 11.71 % | 6.99 % |
Utilities | 0.16 % | 0.60 % | 0.21 % | 0.23 % | 0.29 % | 0.35 % | 0.29 % |
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 Q2 2023 BUYBACKS, $ MILLIONS | ||||||||||
Company | Ticker | Sector | Q2 2023 | Q1 2023 | Q2 2022 | 12-Months | 12-Months | 5-Year | 10-Year | Indicated |
Buybacks | Buybacks | Buybacks | Jun,'23 | Jun,'22 | Buybacks | Buybacks | Dividend | |||
$ Million | $ Million | $ Million | $ Million | $ Million | $ Million | $ Million | $ Million | |||
Apple | AAPL | Information Technology | $19,863 | $20,012 | $24,562 | $86,402 | $91,338 | $414,888 | $624,756 | $14,194 |
Alphabe | GOOGL | Communication Services | $14,969 | $14,557 | $15,197 | $60,325 | $54,580 | $193,491 | $208,035 | $0 |
Microsoft | MSFT | Information Technology | $5,704 | $5,509 | $8,757 | $22,245 | $32,696 | $124,837 | $185,074 | $20,225 |
Exxon Mobil | XOM | Energy | $4,340 | $4,340 | $3,919 | $17,849 | $6,140 | $25,186 | $50,908 | $14,717 |
Chevron | CVX | Energy | $4,340 | $3,607 | $1,689 | $15,061 | $2,307 | $23,488 | $30,366 | $10,751 |
Wells Fargo | WFC | Financials | $4,005 | $4,016 | $4 | $8,032 | $18,325 | $72,305 | $119,108 | $5,253 |
NVIDIA | NVDA | Information Technology | $3,739 | $507 | $3,650 | $9,582 | $7,239 | $20,598 | $25,642 | $396 |
T-Mobile US | TMUS | Communication Services | $3,661 | $4,806 | $43 | $11,495 | $237 | $32,219 | $34,317 | $0 |
Booking Holdings | BKNG | Consumer Discretionary | $3,099 | $2,150 | $1,239 | $9,582 | $2,301 | $25,589 | $34,633 | $0 |
Marathon Petroleum | MPC | Energy | $3,068 | $3,180 | $0 | $10,156 | $6,516 | $19,681 | $29,038 | $1,273 |
Visa | V | Financials | $3,048 | $2,200 | $2,434 | $10,581 | $12,572 | $47,588 | $76,031 | $2,913 |
UnitedHealth Group | UNH | Health Care | $3,000 | $2,000 | $2,500 | $7,000 | $7,100 | $28,100 | $41,074 | $7,001 |
Meta Platforms | META | Communication Services | $2,590 | $10,374 | $6,235 | $27,849 | $53,268 | $120,148 | $132,661 | $0 |
JPMorgan Chase | JPM | Financials | $2,477 | $2,690 | $707 | $5,167 | $10,570 | $67,599 | $113,145 | $12,274 |
Mastercard | MA | Financials | $2,419 | $2,954 | $2,384 | $9,343 | $7,769 | $33,644 | $51,969 | $1,908 |
Lowe's Companies | LOW | Consumer Discretionary | $2,250 | $2,106 | $4,091 | $10,352 | $14,966 | $41,967 | $60,113 | $2,624 |
Broadcom | AVGO | Information Technology | $2,167 | $3,420 | $1,792 | $7,382 | $8,447 | $25,588 | $31,393 | $7,671 |
Deere | DE | Industrials | $2,147 | $1,289 | $1,301 | $5,813 | $3,285 | $13,385 | $20,332 | $1,348 |
Home Depot | HD | Consumer Discretionary | $2,067 | $2,887 | $1,654 | $7,688 | $11,866 | $41,057 | $77,258 | $8,466 |
Comcast | CMCSA | Communication Services | $2,051 | $2,176 | $3,065 | $11,267 | $10,003 | $25,587 | $51,373 | $4,825 |
Top 20 | $91,004 | $94,780 | $85,223 | $353,171 | $361,525 | $1,396,945 | $1,997,226 | $115,837 | ||
S&P 500 | $174,924 | $215,532 | $219,637 | $812,488 | $1,005,390 | $3,870,091 | $6,688,545 | $578,941 | ||
Top 20 % of S&P 500 | 52.02 % | 43.97 % | 38.80 % | 43.47 % | 35.96 % | 36.10 % | 29.86 % | 20.01 % | ||
Gross values are not adjusted for float |
S&P Dow Jones Indices | ||||
S&P 500 Q2 2023 Buyback Report | ||||
SECTOR | DIVIDEND | BUYBACK | COMBINED | |
YIELD | YIELD | YIELD | ||
Consumer Discretionary | 0.83 % | 1.82 % | 2.65 % | |
Consumer Staples | 2.69 % | 1.26 % | 3.95 % | |
Energy | 3.26 % | 4.63 % | 7.89 % | |
Financials | 1.93 % | 3.01 % | 4.95 % | |
HealthCare | 1.69 % | 1.62 % | 3.31 % | |
Industrials | 1.69 % | 2.11 % | 3.79 % | |
Information Technology | 0.82 % | 1.85 % | 2.67 % | |
Materials | 2.02 % | 2.11 % | 4.13 % | |
Real Estate | 3.54 % | 0.23 % | 3.77 % | |
Communications Services | 1.00 % | 4.70 % | 5.70 % | |
Utilities | 3.48 % | 0.20 % | 3.67 % | |
S&P 500 | 1.57 % | 2.20 % | 3.77 % | |
Uses full values (unadjusted for float) | ||||
Dividends based on indicated; buybacks based on the last 12-months ending Q2,'23 |
Share Count Changes | ||
(Y/Y diluted shares used for EPS) | >=4% | <=-4% |
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 % |
Q4 2020 | 9.02 % | 6.01 % |
Q3 2020 | 8.62 % | 9.62 % |
Q2 2020 | 8.60 % | 17.80 % |
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 Dow invented 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.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit: https://www.spglobal.com/spdji/en/.
S&P Dow Jones Indices Media Contacts:
April Kabahar
(+1) 917 796 3121
[email protected]
Alyssa Augustyn
(+1) 773 919 4732
[email protected]
S&P Dow Jones Indices Index Services:
Howard Silverblatt
Senior Index Analyst
(+1) 973 769 2306
[email protected]
View original content to download multimedia:https://www.prnewswire.com/news-releases/sp-500-q2-2023-buybacks-decline-18-8-as-sector-expenditures-shift-again-buyback-tax-reduced-operating-earnings-by-0-34-301924762.html
SOURCE S&P Dow Jones Indices
We use cookies to tailor your experience, measure site performance and present relevant offers and advertisements. By clicking ‘Accept’ or any content on this site, you agree that cookies can be placed on your browser. You can view our privacy policy to learn more.
If you would like to get more data, alerts and access to Real Vision videos, join us as an Insider Tracking Advantage Ultra member