• 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.

(PRNewsfoto/S&P Dow Jones Indices)

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

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S&P Dow Jones Indices Media Contacts:
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(+1) 917 796 3121
april.kabahar@spglobal.com

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(+1) 773 919 4732
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S&P Dow Jones Indices Index Services:
Howard Silverblatt 
Senior Index Analyst
(+1) 973 769 2306
howard.silverblatt@spglobal.com 

 

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