S&P 500 Buybacks & Dividends

Corporate Finance Briefing: S&P 500 Buybacks & Dividends

Yardeni Research, Inc.

July 15, 2022

Dr. Edward Yardeni

516-972-7683 eyardeni@

Joe Abbott

jabbott@

Mali Quintana

480-664-1333 aquintana@

Please visit our sites at blog.

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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 Quarterly Buybacks

11

S&P 500 Sectors Cumulative Buybacks Since Q1-2009

12

S&P 500 Sectors Quarterly Dividends

13

S&P 500 Sectors Fuor Quarter Buybacks

14

S&P 500 Sectors Quarterly Buybacks+Dividends

15

July 15, 2022 / S&P 500 Buybacks & Dividends

Yardeni Research, Inc.



Buybacks & Dividends

Figure 1.

1250

S&P 500 BUYBACKS 1150 (billion dollars, annualized)

1050

950

Actual x 4 (1124.0)

4-Quarter Sum (984.6)

850

1250

Q1

1150

1050

Q1 950

850



750

750

650

650

550

550

450

450

350

350

250

250

150

150

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.

600

S&P 500 DIVIDENDS 550 (billion dollars, annualized)

600

Q2

550

500

500

450

Actual x 4 (560.6)

450

400

4-Quarter Sum (541.4)

400



350

350

300

300

250

250

200

200

150

150

100

100

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.

Page 3 / July 15, 2022 / S&P 500 Buybacks & Dividends

Yardeni Research, Inc.



Buybacks & Dividends

Figure 3.

300

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

250

300 Q1

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 2022 2023 2024

Source: Standard & Poor's.

Figure 4.

175

S&P 500 DIVIDENDS (billion dollars, quarterly)

150

125

175

150 Q2

125



100

100

75

75

50

50

25

25

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 2022 2023 2024

Source: Standard & Poor's.

Page 4 / July 15, 2022 / S&P 500 Buybacks & Dividends

Yardeni Research, Inc.



Buybacks & Dividends

Figure 5.

5

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

4

Buybacks

3

Dividends

S&P 500 Index

5

Jun

4

3



2

2

Q1

1

1

Q2

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 2022 2023 2024

Source: Standard & Poor's.

Figure 6.

1200

S&P 500 BUYBACKS 1000 (billion dollars, annualized)

1200 Q1

1000

800

800

600

600

400

400

200

200

0

0

12

12

S&P 500 FORWARD EARNINGS YIELD & CORPORATE BOND YIELD

10 (percent)

10

8

8

6

7/8

6

4

Jun

4

BoFA Merrill Lynch AAA

2

Corporate Bond Yield (4.3)

2

S&P 500 Forward Earnings Yield* (6.2) 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 2022 2023 2024

* 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 / July 15, 2022 / S&P 500 Buybacks & Dividends

Yardeni Research, Inc.



Buybacks & Dividends

Figure 7.

1800

S&P 500 BUYBACKS & DIVIDENDS 1600 (billion dollars, annualized)

1800

Q1 1600

1400

1400

1200

1200

1000

Total* (1509.1)

1000

800

800

600

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 2022 2023 2024

1100

Q1

1100

900

900

Buybacks* (984.6)

700

700

500

500

300

300

100

100

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

600

600

Q2

500

500

Dividends* (541.4)

400

400



300

300

200

200

100

100

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

*4-quarter sum. Source: Standard & Poor's.

Page 6 / July 15, 2022 / S&P 500 Buybacks & Dividends

Yardeni Research, Inc.



Buybacks

Figure 8.

600

600

TOTAL GROSS ISSUANCE OF STOCKS MINUS S&P 500 BUYBACKS

(billion dollars)

400

400

Total Gross Issuance

of Stocks Minus

200

S&P 500 Buybacks

200

(annualized)

0

0

-200

-200

-400

-400

-600

-600

-800 -1000

Corporate Equities: Net Issuance Nonfinancial Corporate Business (4-quarter sum)

Q1

-800

Q1

-1000

-1200

-1200

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: Federal Reserve Board and Standard & Poor's Corporation.

Page 7 / July 15, 2022 / S&P 500 Buybacks & Dividends

Yardeni Research, Inc.



S&P 1500/500/400/600 Divisors

Figure 9.

50000

S&P 1500 DIVISOR*

48000

46000

44000

42000

40000

S&P 1500 DIVISOR* (y/y percent change)

7/15

8

6

4

2

7/15

0

-2

-4

38000 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26

9750

S&P 500 DIVISOR*

9250

8750 7/15

8250

7750

-6 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26

10

S&P 500 DIVISOR*

(y/y percent change)

8

6

4

2

7/15

0

-2

7250 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26

-4 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26

3000

S&P 400 MIDCAP DIVISOR*

2500

2000

S&P 400 MIDCAP DIVISOR* (y/y percent change)

10

5

0 7/15

-5

1500

-10

-15

1000

7/15

-20

500 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26

-25 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26

2500

S&P 600 SMALLCAP DIVISOR*

2000 1500

S&P 600 SMALLCAP DIVISOR* (y/y percent change)

10

5

0 7/15

-5

1000

7/15

500 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26

-10

-15

-20 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26

* Divisor is used to ensure that changes in shares outstanding, capital actions, and the addition or deletion of stocks to the index do not change the level of the index. Source: Standard & Poor's Corporation.

Page 8 / July 15, 2022 / S&P 500 Buybacks & Dividends

Yardeni Research, Inc.



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