S&P 500 Q4 2022 Buybacks Tick up, As 2022 Sets A Record; Proforma Buyback Tax Would Have Reduced Operating Earnings by 0.51% for 2022
- S&P 500 Q4 2022 buybacks were $211.2 billion, up 0.2% from Q3 2022's $210.8 billion, as 2022 sets an annual record at $922.7 billion, up from 2021's $881.7 billion
- Financials continued their pullback, which started in Q2, with Q4 2022 down 56.3% from Q4 2021, as 2022 was down 36.3%; Energy went up 403% in 2022
- On a proforma basis, the new net buyback 1% excise tax, which started in 2023, would have reduced 2022 operating earnings by 0.51%
NEW YORK, March 21, 2023 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") announced today preliminary S&P 500® stock buybacks, or share repurchases, data for Q4 2022.
Historical data on S&P 500 buybacks are available at www.spdji.com/indices/equity/sp-500.
Key Takeaways:
- Q4 2022 share repurchases were $211.2 billion, up 0.2% from Q3 2022's $210.8 billion expenditure and down 21.8% from Q4 2021's $270.1 billion.
- 318 companies reported buybacks of at least $5 million for the quarter, down from 319 in Q3 2022 and down from 325 in Q4 2021; 385 companies did some buybacks for the quarter, up from 384 in Q3 2022 and up from 383 in Q4 2021; 439 companies did some buybacks for the 12-months ending December 2022, up from 422 in the prior 2021 period.
- Buybacks remained top heavy with the top 20 companies accounting for 45.7% of Q4 2022 buybacks, which was below the historical average of 47.1%, and below the 49.0% level reported for Q3 2022; the pre-COVID historical average of 44.5%.
- For the 12-months ending December 2022, buybacks were $922.7 billion, setting a new annual record, and up 4.6% from 2021's $881.7 billion, but down from the 12-month September $981.6 billion and down from the record $1.005 trillion posted for the June 2022 period.
- 19.2% of companies reduced share counts used for earnings-per-share (EPS) by at least 4% year-over-year, down from Q3 2022's 21.2% and up from Q4 2021's 14.9%; for Q4 2022 152 issues increased their shares used for EPS over Q3 2022, and 291 reduced them.
- S&P 500 Q4 2022 dividends increased 4.1% to a record $146.1 billion from Q3 2022's $140.3 billion and were 9.1% greater than the $133.9 billion in Q4 2021. For 2022, dividends set a record $564.6 billion payment, up 10.4% on an aggregate basis from 2021's $511.2 billion.
- Total shareholders return of buybacks and dividends increased to $357.3 billion in Q4 2022, up 1.7% from Q3 2022's $351.2 billion and down 11.6% from Q4 2021's $404.0 billion.
- Total shareholder returns for 2022 increased to $1.487 trillion from the 2021 $1.393 trillion.
- On a proforma basis, the new 1% excise tax on net buybacks, which started in 2023, would have reduced the Q4 2022 S&P 500 operating earnings by 0.46% and as reported GAAP earnings by 0.58%, the proforma for 2022 was a 0.51% reduction for operating and a 0.58% reduction for as reported.
"Companies, led by Financials, continued to pull back from their Q1 2022 record-breaking buyback expenditures, as energy remains the outlier, increasing its buybacks, as it set record profits," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "Share count reduction continues, as almost one-in-five issues increased their year-over-year EPS by at least 4% due to buybacks. The impact is expected to continue into 2023, even as economic indicators remain unclear at this point."
1% Buyback Excise Tax for 2023:
On a proforma basis, the new 1% excise tax on net buybacks would have reduced Q4 2022 operating earnings by 0.46%, the same as the proforma 0.46% for Q3 2022, with as reported GAAP earnings being reduced by 0.58%, up from the proforma 0.52% for Q3 2022. For the proforma 2022 period, the tax would have cost S&P 500 companies $8.5 billion, and would have reduced operating earnings by 0.51% and as reported GAAP earnings by 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. In his proposed fiscal 2024 budget, President Biden quantified increasing the tax to 4%. Given the initial 1% buyback tax had bipartisan support, there is an expectation that some increase, and potential for change to the type of buybacks that are taxed, which could be incorporated into the fiscal budget. 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 in corporate budgets."
Q4 2022 and 2022 GICS® Sector Analysis:
Information Technology continued to lead in buybacks as its percentage of buybacks and aggregate expenditures decreased for the quarter. In Q4 2022, IT's share decreased to 27.3% of all S&P 500 buybacks compared to Q3 2022's 28.8% and was down from Q4 2021's 27.7%. Expenditures for Q4 2022 decreased (5.1%) to $57.7 billion from the prior quarter's $60.8 billion and were 23.0% lower than the Q4 2021 expenditure of $74.9 billion. For 2022, the sector spent $262.0 billion, representing 28.4% of all S&P buybacks, compared to the 2021 $260.0 billion expenditure, which represented 29.5% of all buybacks. Over the 10-year period, the sector spent $1.892 trillion, representing 29.0% of the expenditures.
Financials decreased their buybacks as their Q4 2022 expenditures decreased 2.3% to $22.5 billion, representing 10.7% of the buybacks, from the Q3 2022 $23.0 billion. As for Q4 2021 the sector spent $51.5 billion. The pullback was attributed to large-backs protecting their dividends with respect to the Fed's bank stress test. For 2022 the sector spent $121.4 billion, down 36.3% from 2021's 190.6 billion. Expenditures were expected to increase in Q1 2023. Of note however is the recent banking circumstances, which may reduce buybacks as companies focus more on dividends and liquidity.
Energy decreased their buybacks as their expenditure declined 9.9% for the quarter to $19.8 billion, representing 9.4% of the buybacks compared to the prior quarter's $22.0 billion. However, this quarter was still an increase of 160% from Q4 2021 $7.6 billion level. For the year, Energy spent $63.8 billion on buybacks, up 403% from 2021's $12.7 billion.
Health Care buybacks increased 21.0% for the quarter, spending $24.4 billion in Q4 2022, representing 11.6% of all buybacks, up from the Q3 2022 $20.2 billion. This accounted for 9.6% of the buybacks, which were 11.7% higher than the Q4 2021 expenditure of $21.8 billion. For 2022, the sector spent $102.9 billion, up 35.1% from 2021's $76.2 billion.
Issues:
The five issues with the highest total buybacks for Q4 2022 are:
- Apple (AAPL): continued to be the poster child for buybacks as it once again spent the most of any issue, with its Q4 2022 expenditure ranking as the eleventh highest in S&P 500 history. For the quarter, the company spent $21.8 billion, down from Q3 2022's $24.7 billion (the third largest in index history). Apple holds 18 of the top 20 record quarters (Meta Platforms holds #12 and QUALCOMM holds #13). For 2022, Apple spent $94.1 billion on buybacks, up from the prior year's $88.3 billion. Over the five-year period, they have spent $419.8 billion and $601.3 billion over the ten-year period.
- Alphabet (GOOG/L): was next with $15.41 billion for Q4 2022, a tick up from the $15.39 billion in Q3 2022; the 2022 expenditure was $59.3 billion versus the 2021 expenditure of $50.3 billion.
- Meta Platforms (META): $7.5 billion for Q4 2022, up from $7.4 billion in Q3 2022; the 2022 expenditure was $31.6 billion versus $50.1 billion.
- Microsoft (MSFT): $5.5 billion for Q4 2022, down from $5.6 billion in Q3 2022; the 2022 expenditure was $28.6 billion versus $29.2 billion.
- Exxon Mobile (XOM): $4.7 billion in Q4 2022, up from $4.5 billion in Q3 2022 and $0.2 billion in Q4 2021; the 2022 expenditure was $15.2 billion versus $0.2 billion.
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 |
|
2022 |
$8.47 |
0.51 % |
0.58 % |
2021 |
$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 |
|
2022 Prelim. |
$32,133 |
$1,655.58 |
$1,453.34 |
$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 % |
12/31/2022 Prelim. |
$32,133 |
$420.46 |
$331.41 |
$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 % |
3/29/2019 |
$23,619 |
$316.56 |
$291.82 |
$117.33 |
$205.81 |
1.97 % |
3.49 % |
5.45 % |
12/31/2018 |
$21,027 |
$293.82 |
$242.91 |
$119.81 |
$222.98 |
2.17 % |
3.84 % |
6.01 % |
S&P Dow Jones Indices |
|||||||
S&P 500 SECTOR BUYBACKS |
|||||||
SECTOR $ MILLIONS |
Q4,'22 |
Q3,'22 |
Q4,'21 |
12MoDec,'22 |
12MoDec,'21 |
5-YEARS |
10-YEARS |
Consumer Discretionary |
$18,819 |
$19,542 |
$30,889 |
$94,238 |
$86,554 |
$365,456 |
$782,566 |
Consumer Staples |
$7,033 |
$11,316 |
$12,817 |
$37,429 |
$39,697 |
$164,155 |
$388,486 |
Energy |
$19,833 |
$22,014 |
$7,614 |
$63,782 |
$12,691 |
$129,971 |
$245,597 |
Financials |
$22,497 |
$23,027 |
$51,514 |
$121,431 |
$190,606 |
$721,461 |
$1,178,793 |
Healthcare |
$24,394 |
$20,152 |
$21,840 |
$102,881 |
$76,158 |
$425,676 |
$770,593 |
Industrials |
$22,403 |
$17,113 |
$16,268 |
$82,095 |
$62,274 |
$316,629 |
$646,922 |
Information Technology |
$57,654 |
$60,771 |
$74,868 |
$261,960 |
$260,044 |
$1,227,229 |
$1,892,013 |
Materials |
$6,548 |
$5,678 |
$9,244 |
$28,386 |
$23,185 |
$89,783 |
$158,042 |
Real Estate |
$728 |
$793 |
$645 |
$3,779 |
$1,385 |
$13,825 |
$18,427 |
Communication Services |
$31,155 |
$30,297 |
$43,305 |
$124,963 |
$127,584 |
$392,422 |
$416,791 |
Utilities |
$126 |
$140 |
$1,099 |
$1,737 |
$1,541 |
$12,700 |
$17,875 |
TOTAL |
$211,189 |
$210,843 |
$270,102 |
$922,680 |
$881,718 |
$3,859,307 |
$6,516,106 |
SECTOR BUYBACK MAKEUP % |
Q4,'22 |
Q3,'22 |
Q4,'21 |
12MoDec,'22 |
12MoDec,'21 |
5-YEARS |
10-YEARS |
Consumer Discretionary |
8.91 % |
9.27 % |
11.44 % |
10.21 % |
9.82 % |
9.47 % |
12.01 % |
Consumer Staples |
3.33 % |
5.37 % |
4.75 % |
4.06 % |
4.50 % |
4.25 % |
5.96 % |
Energy |
9.39 % |
10.44 % |
2.82 % |
6.91 % |
1.44 % |
3.37 % |
3.77 % |
Financials |
10.65 % |
10.92 % |
19.07 % |
13.16 % |
21.62 % |
18.69 % |
18.09 % |
Healthcare |
11.55 % |
9.56 % |
8.09 % |
11.15 % |
8.64 % |
11.03 % |
11.83 % |
Industrials |
10.61 % |
8.12 % |
6.02 % |
8.90 % |
7.06 % |
8.20 % |
9.93 % |
Information Technology |
27.30 % |
28.82 % |
27.72 % |
28.39 % |
29.49 % |
31.80 % |
29.04 % |
Materials |
3.10 % |
2.69 % |
3.42 % |
3.08 % |
2.63 % |
2.33 % |
2.43 % |
Real Estate |
0.34 % |
0.38 % |
0.24 % |
0.41 % |
0.16 % |
0.36 % |
0.28 % |
Communication Services |
14.75 % |
14.37 % |
16.03 % |
13.54 % |
14.47 % |
10.17 % |
6.40 % |
Utilities |
0.06 % |
0.07 % |
0.41 % |
0.19 % |
0.17 % |
0.33 % |
0.27 % |
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 Q4 2022 BUYBACKS, $ MILLIONS |
||||||||||
Company |
Ticker |
Sector |
Q4 2022 |
Q3 2021 |
Q4 20221 |
12-Months |
12-Months |
5-Year |
10-Year |
Indicated |
Buybacks |
Buybacks |
Buybacks |
Ded,'22 |
Dec,'21 |
Buybacks |
Buybacks |
Dividend |
|||
$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
$ Million |
|||
Apple |
AAPL |
Information Technology |
$21,791 |
$24,736 |
$23,366 |
$94,050 |
$88,257 |
$419,781 |
$601,348 |
$13,757 |
Alphabet |
GOOGL |
Communication Services |
$15,407 |
$15,392 |
$13,473 |
$59,296 |
$50,274 |
$168,190 |
$178,509 |
$0 |
Meta Platforms |
META |
Communication Services |
$7,520 |
$7,365 |
$21,569 |
$31,551 |
$50,052 |
$114,065 |
$120,255 |
$0 |
Microsoft |
MSFT |
Information Technology |
$5,459 |
$5,573 |
$7,433 |
$28,611 |
$29,224 |
$119,767 |
$175,931 |
$20,276 |
Exxon Mobil |
XOM |
Energy |
$4,675 |
$4,494 |
$154 |
$15,155 |
$155 |
$16,935 |
$51,880 |
$14,991 |
Lockheed Martin |
LMT |
Industrials |
$4,206 |
$1,338 |
$2,087 |
$7,900 |
$4,087 |
$15,694 |
$24,294 |
$2,799 |
Comcast |
CMCSA |
Communication Services |
$3,515 |
$3,525 |
$2,055 |
$13,328 |
$4,672 |
$24,358 |
$48,146 |
$5,004 |
Chevron |
CVX |
Energy |
$3,417 |
$0 |
$0 |
$8,803 |
$618 |
$15,541 |
$24,447 |
$10,745 |
DuPont de Nemours |
DD |
Materials |
$3,252 |
$252 |
$500 |
$4,402 |
$2,169 |
$12,663 |
$20,409 |
$715 |
Visa |
V |
Information Technology |
$3,227 |
$2,106 |
$4,217 |
$10,719 |
$11,107 |
$46,168 |
$73,584 |
$2,943 |
Marathon Petroleum |
MPC |
Energy |
$2,794 |
$3,908 |
$2,742 |
$9,548 |
$4,654 |
$18,439 |
$26,897 |
$1,406 |
ConocoPhillips |
COP |
Energy |
$2,746 |
$2,804 |
$1,399 |
$9,275 |
$3,623 |
$20,291 |
$23,436 |
$2,542 |
Berkshire Hathaway |
BRK.B |
Financials |
$2,608 |
$1,055 |
$6,869 |
$7,854 |
$27,061 |
$65,817 |
$65,817 |
$0 |
T-Mobile US |
TMUS |
Communication Services |
$2,461 |
$567 |
$8 |
$3,243 |
$316 |
$24,907 |
$25,850 |
$0 |
Mastercard |
MA |
Information Technology |
$2,418 |
$1,552 |
$1,279 |
$8,894 |
$6,037 |
$31,225 |
$47,943 |
$1,935 |
Bristol-Myers Squibb |
BMY |
Health Care |
$2,416 |
$585 |
$2,751 |
$8,001 |
$6,287 |
$23,454 |
$26,587 |
$4,848 |
Booking Holdings |
BKNG |
Consumer Discretionary |
$2,343 |
$1,990 |
$4 |
$6,621 |
$163 |
$22,245 |
$29,808 |
$0 |
Salesforce |
CRM |
Information Technology |
$2,323 |
$1,677 |
$0 |
$4,000 |
$0 |
$4,000 |
$4,000 |
$0 |
McKesson |
MCK |
Health Care |
$2,016 |
$484 |
$714 |
$5,030 |
$2,228 |
$12,109 |
$17,768 |
$306 |
Procter & Gamble |
PG |
Consumer Staples |
$2,002 |
$4,000 |
$4,754 |
$8,501 |
$13,505 |
$42,173 |
$64,893 |
$8,649 |
Top 20 |
$96,596 |
$83,403 |
$95,374 |
$344,782 |
$304,489 |
$1,217,822 |
$1,651,802 |
$90,917 |
||
S&P 500 |
$211,189 |
$210,843 |
$270,102 |
$922,680 |
$881,718 |
$3,859,307 |
$6,516,107 |
$575,523 |
||
Top 20 % of S&P 500 |
45.74 % |
39.56 % |
35.31 % |
37.37 % |
34.53 % |
31.56 % |
25.35 % |
15.80 % |
||
Gross values are not adjusted for float |
||||||||||
S&P Dow Jones Indices |
|||
S&P 500 Q4 2022 Buyback Report |
|||
SECTOR |
DIVIDEND |
BUYBACK |
COMBINED |
YIELD |
YIELD |
YIELD |
|
Consumer Discretionary |
1.02 % |
2.69 % |
3.72 % |
Consumer Staples |
2.70 % |
1.70 % |
4.40 % |
Energy |
4.05 % |
4.32 % |
8.37 % |
Financials |
2.35 % |
3.50 % |
5.84 % |
HealthCare |
1.76 % |
2.14 % |
3.91 % |
Industrials |
1.78 % |
2.97 % |
4.74 % |
Information Technology |
0.99 % |
2.75 % |
3.74 % |
Materials |
2.16 % |
3.43 % |
5.60 % |
Real Estate |
3.72 % |
0.44 % |
4.15 % |
Communications Services |
1.22 % |
5.71 % |
6.93 % |
Utilities |
3.27 % |
0.18 % |
3.44 % |
S&P 500 |
1.76 % |
2.83 % |
4.59 % |
Uses full values (unadjusted for float) |
|||
Dividends based on indicated; buybacks based on the last 12-months ending Q4,'22 |
|||
Share Count Changes |
||
(Y/Y diluted shares used for EPS) |
>=4% |
<=-4% |
Q4 2022 |
5.01 % |
19.24 % |
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 % |
Q1 2020 |
8.00 % |
19.60 % |
Q4 2019 |
7.63 % |
20.68 % |
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]
SOURCE S&P Dow Jones Indices
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