PDF S&P 500 Buybacks & Dividends

Corporate Finance Briefing: S&P 500 Buybacks & Dividends

Yardeni Research, Inc.

January 6, 2020

Dr. Edward Yardeni

516-972-7683 eyardeni@

Joe Abbott

732-497-5306 jabbott@

Mali Quintana

480-664-1333 aquintana@

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Table Of Contents Table Of Contents

Buybacks & Dividends

3-6

Buybacks

7

S&P 1500/500/400/600 Divisors

8

Buybacks & Dividends

9

Buybacks & Dividends as % of Operating Earnings

10

S&P 500 Sectors Buybacks

11

S&P 500 Sectors Cumulative Buybacks Since Q1-2009

12

S&P 500 Sectors Dividends

13

S&P 500 Sectors Buybacks

14

January 6, 2020 / S&P 500 Buybacks & Dividends

Yardeni Research, Inc.



Figure 1.

1000

S&P 500 BUYBACKS (billion dollars, annualized)

Buybacks & Dividends

800 Actual x 4 (703.6) 4-Quarter Sum (770.1)

600

1000

800 Q3

600



400

400

200

200

0

0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: Standard & Poor's.

Figure 2.

550

S&P 500 DIVIDENDS 500 (billion dollars, annualized)

550

Q4

500

450

450

400

400

350

4-Quarter Sum (483.6)

350



300

300

250

250

200

200

150

150

100

100

50

50

0

0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: Standard & Poor's.

Page 3 / January 6, 2020 / S&P 500 Buybacks & Dividends

Yardeni Research, Inc.



Buybacks & Dividends

Figure 3.

250

S&P 500 BUYBACKS (billion dollars, quarterly, nsa)

200

150

250

200 Q3

150



100

100

50

50

0

0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: Standard & Poor's.

Figure 4.

140

S&P 500 DIVIDENDS (billion dollars, quarterly)

120

140

Q4 120

100

100



80

80

60

60

40

40

20

20

0

0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: Standard & Poor's Corporation.

Page 4 / January 6, 2020 / S&P 500 Buybacks & Dividends

Yardeni Research, Inc.



Buybacks & Dividends

Figure 5.

3250

S&P 500 DIVIDENDS & BUYBACKS 3000 (trillion dollars, annualized)

2750

Buybacks

2500

Dividends

2250

S&P 500 Index

2000

Dec

3.0

2.5

2.0



1750 1500 1250 1000

1.5

Q3 1.0

750

500

Q4

.5

250

0

.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: Standard & Poor's.

Figure 6.

1000

S&P 500 BUYBACKS (billion dollars, annualized)

800

600

1000

800 Q3

600

400

400

200

200

0

0

13

13

12 S&P 500 FORWARD EARNINGS YIELD & CORPORATE BOND YIELD

12

11 (percent) 10 9

S&P 500 Forward Earnings Yield* (5.5)

11

BoA Merrill Lynch AA-AAA

10

Corporate Bond Yield (3.1)

9

8

8

7

7

6

6

1/3

5

5

4

4

3 2

Dec

3

2

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

* Forward earnings (time-weighted average of consensus operating earnings estimates for current and next year) divided by S&P 500 stock price index. Source: Thomson Reuters I/B/E/S, Standard & Poor's and Bank of America Merrill Lynch.

Page 5 / January 6, 2020 / S&P 500 Buybacks & Dividends

Yardeni Research, Inc.



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