S&P 500 Yields: Earnings, Dividends, & Buybacks

Corporate Finance Briefing: S&P 500 Yields:

Earnings, Dividends, & Buybacks

Yardeni Research, Inc.

June 16, 2022

Dr. Edward Yardeni

516-972-7683 eyardeni@

Joe Abbott

732-497-5306 jabbott@

Mali Quintana

480-664-1333 aquintana@

Please visit our sites at blog.

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Table Of Contents Table Of Contents

S&P 500

3

S&P 500 and Ex-Energy

4

S&P 500 Communication Services

5

S&P 500 Consumer Discretionary

6

S&P 500 Consumer Staples

7

S&P 500 Energy

8

S&P 500 Financials

9

S&P 500 Health Care

10

S&P 500 Industrials

11

S&P 500 Information Technology

12

S&P 500 Materials

13

S&P 500 Utilities

14

S&P 500 Sectors Dividend Yield

15

S&P 500 Sectors Buyback Yield

16

S&P 500 Sectors Dividends + Buybacks Yield

17

Dividends + Buybacks as % of Operating Earnings

18

Buybacks as % of Market Cap

19

S&P 500 Sectors Buybacks

20

S&P 500 Sectors Cumulative Buybacks Since Q1-2009

21

June 16, 2022 / S&P 500 Yields: Earnings, Dividends, & Buybacks

Yardeni Research, Inc.



S&P 500

Figure 1.

2000

S&P 500 BUYBACKS, DIVIDENDS, & OPERATING EARNINGS 1750 (billion dollars, trailing four-quarter)

1500

Buybacks (984.6)

Operating Earnings (1778.9)

Dividends (524.5)

Buybacks+Dividends (1509.1)

1250

1000

750

500

250

0 150

Buybacks+Dividends

125

as percent of Operating Earnings (84.8)

2000

Q1

1750

Q1

1500

1250

Q1

1000

750

Q1

500

250

0 150

125

100

100

Q1

75

75



50

50

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's.

Figure 2.

1750

S&P 500 YIELD FROM BUYBACKS & DIVIDENDS

1500

1750

Q1

1500

1250

Buybacks + Dividends

1250

(billion dollars, trailing four-quarter)

1000

(1509.06)

1000

750

750

500

500

250

250

0

0

8

8

Yield (%)

7

Buybacks (2.57)

7

6

Dividends (1.37)

6

5

Buybacks + Dividends (3.94)

5

4

Q1

4

3

3

Q1

2

2

Q1

1

1



0

0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's.

Page 3 / June 16, 2022 / S&P 500 Yields: Earnings, Dividends, & Buybacks

Yardeni Research, Inc.



Figure 3.

300

S&P 500 BUYBACKS 250 (billion dollars, quarterly)

S&P 500 and Ex-Energy

300 Q1

250

200

200

150

150

100

100

50

50

0

0

1.4

1.4

1.2

1.0

Buybacks as a % of S&P 500 Market Cap (0.73)

.8

.6

1.2 1.0 .8 Q1 .6

.4

.4

.2

.2



.0

.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's.

Figure 4.

1750

S&P 500 EX-ENERGY BUYBACKS, DIVIDENDS, & OPERATING EARNINGS

Q1

1750

1500 (billion dollars, trailing four-quarter)

Buybacks (963.8)

Operating Earnings (1672.3)

1250

Dividends (477.3)

Buybacks+Dividends (1441.1)

Q1

1500

1250

1000

Q1

1000

750

750

500

Q1

500

250

250

0

0

175

175

Capped at 150% due to extreme values.

150

150

Buybacks+Dividends

125

as percent of Operating Earnings (86.2)

125

100

100

Q1

75

75



50

50

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's.

Page 4 / June 16, 2022 / S&P 500 Yields: Earnings, Dividends, & Buybacks

Yardeni Research, Inc.



S&P 500 Communication Services

Figure 5.

250

250

S&P 500 COMMUNICATION SERVICES BUYBACKS, DIVIDENDS, & OPERATING EARNINGS

(billion dollars, trailing four-quarter)

200

Buybacks (139.9)

Operating Earnings (185.8)

Dividends (33.4)

Buybacks+Dividends (173.3)

200 Q1 Q1

150

Q1

150

100

100

50

0 175

Buybacks+Dividends

150

as percent of

Operating Earnings

125

(93.3)

50 Q1

0 175 Capped at 150% due to extreme values. 150

125

100

100

Q1

75

75



50

50

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's Corporation.

Figure 6.

200

200

S&P 500 COMMUNICATION SERVICES YIELD FROM BUYBACKS & DIVIDENDS

160

Buybacks + Dividends

(billion dollars, trailing four-quarter)

Q1 160

(173.26)

120

120

80

80

40

40

0

0

12

12

Yield (%)

10

Buybacks (3.90)

10

Dividends (0.93)

8

Buybacks +

8

Dividends (4.83)

6

6

Q1

4

Q1

4

2

2

0

Q1 0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's Corporation.

Page 5 / June 16, 2022 / S&P 500 Yields: Earnings, Dividends, & Buybacks

Yardeni Research, Inc.



S&P 500 Consumer Discretionary

Figure 7.

200

200

S&P 500 CONSUMER DISCRETIONARY BUYBACKS, DIVIDENDS, & OPERATING EARNINGS

175 (billion dollars, trailing four-quarter)

175

150

Buybacks (98.9)

Buybacks+Dividends (128.3)

150

Dividends (29.5)

125

Operating Earnings (129.0)

Q1

125

100

Q1

100

75

75

50

50

25

Q1

25

0

0

175

175

Capped at 150% due to extreme values.

Buybacks+Dividends

150

as percent of

150

Operating Earnings (99.5)

125

125

100

Q1

100

75

75

50

50



25

25

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's Corporation.

Figure 8.

175

175

S&P 500 CONSUMER DISCRETIONARY YIELD FROM BUYBACKS & DIVIDENDS

150

150

Buybacks + Dividends

125

(billion dollars, trailing four-quarter)

100

(128.34)

Q1

125

100

75

75

50

50

25

25

0

0

12

12

Yield (%)

10

Buybacks (2.15)

10

Dividends (0.64)

8

Buybacks +

8

Dividends (2.79)

6

6

4

4

Q1

2

Q1

2

0

Q1 0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's Corporation.

Page 6 / June 16, 2022 / S&P 500 Yields: Earnings, Dividends, & Buybacks

Yardeni Research, Inc.



S&P 500 Consumer Staples

Figure 9.

160

160

S&P 500 CONSUMER STAPLES BUYBACKS, DIVIDENDS, & OPERATING EARNINGS

(billion dollars, trailing four-quarter)

120

Buybacks (38.5)

Operating Earnings (105.3)

120

Dividends (56.6)

Buybacks+Dividends (95.1)

Q1

Q1

80

80

Q1

40

Q1

40

0

0

150

150

Buybacks+Dividends

as percent of

125

Operating Earnings (90.3)

125

100

100

Q1

75

75



50

50

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's Corporation.

Figure 10.

140

140

S&P 500 CONSUMER STAPLES YIELD FROM BUYBACKS & DIVIDENDS

120

Buybacks + Dividends

120

100

(billion dollars, trailing four-quarter) (95.12)

Q1

100

80

80

60

60

40

40

20

20

0

0

10

10

Yield (%)

8

Buybacks (1.65)

8

Dividends (2.43)

Buybacks + Dividends (4.09)

6

6

4

Q1

4

Q1

2

Q1

2



0

0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's Corporation.

Page 7 / June 16, 2022 / S&P 500 Yields: Earnings, Dividends, & Buybacks

Yardeni Research, Inc.



S&P 500 Energy

Figure 11.

250

250

S&P 500 ENERGY BUYBACKS, DIVIDENDS, & OPERATING EARNINGS

200 (billion dollars, trailing four-quarter)

Buybacks (20.8)

Operating Earnings (106.6)

200

150

Dividends (47.2)

Buybacks+Dividends (67.9)

150

100

Q1

100

Q1

50

Q1

50

Q1

0

0

-50

-50

-100

-100

175

175

Capped at 150% and 0% due to extreme values.

150

Buybacks+Dividends

150

as percent of

125

Operating Earnings (63.8)

125

100

100

75

75

Q1

50

50

25

25



0

0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's Corporation.

Figure 12.

120

S&P 500 ENERGY YIELD FROM BUYBACKS & DIVIDENDS

100

Buybacks + Dividends

(billion dollars, trailing four-quarter)

80

(67.95)

60

120

100

80 Q1

60

40

40

20

20

0

0

12

12

Yield (%)

10

Buybacks (1.40)

10

Dividends (3.18)

8

Buybacks + Dividends (4.58)

8

6

6

Q1

4

4

Q1

2

2

Q1



0

0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Standard & Poor's Corporation.

Page 8 / June 16, 2022 / S&P 500 Yields: Earnings, Dividends, & Buybacks

Yardeni Research, Inc.



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