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S&P 500 Stock Buybacks Up 63% from Q1 2010; Up Just 4% from Q4 2010 Share Count Remains Flat As Few Companies Reduce Outstanding Shares

NEW YORK, June 29, 2011 /PRNewswire/ -- S&P Indices announced today that preliminary results show that S&P 500 stock buybacks increased 62.6% to $89.8 billion during the first quarter of 2011, up from the $55.3 billion registered during the first quarter of 2010. The quarter represents the seventh consecutive quarterly increase for buybacks, but only a modest 4.0% increase over the fourth quarter of 2010 ($86.4 billion).

"The 4.0% increase in buybacks from last quarter is significantly less than the 8.1% average price increase, and translates into fewer shares being repurchased," says Howard Silverblatt, Senior Index Analyst at S&P Indices. "At this point, companies are continuing to use buybacks to control employee options as well as shares used for dividend reinvestment programs. Few companies are venturing outside of the box to purchase additional shares, as was the common practice in late 2005 through mid-2007."

Silverblatt also determined that over the past four quarters, the number of companies taking part in stock buyback programs has slowly increased. According to S&P Indices' data, 305 S&P 500 companies purchased their shares in the first quarter of 2011, compared to 270 during the fourth quarter of 2010, 261 in the third quarter, 257 in the second quarter, and 251 in the first quarter. Over the past year, 354 S&P 500 companies have spent US$ 333 billion on buybacks with 219 issues spending more on buybacks than on dividends, of which 57 didn't pay cash dividends.

On a sector basis, Silverblatt notes that the Information Technology sector continues to dominate the buyback market. For the first quarter of 2011, Information Technology issues accounted for 23.4% of all buybacks, up slightly from the 22.3% that participated during the fourth quarter of 2010. Consumer Discretionary posted the largest increase in buyback percentages, increasing 33.7% over the fourth quarter of 2010.

Exxon Mobil maintained its top position amongst all companies implementing their buyback program, spending $5.7 billion on share repurchases during the first quarter, compared to $5.8 billion during the fourth quarter of 2010. Trailing closely behind was International Business Machines with $4.0 billion, Intel Corporation with $4.0 billion, Hewlett-Packard Company with $2.7 billion, and Wal-Mart Stores with $2.1 billion.

For the second quarter of 2011, Silverblatt expects moderate growth for buybacks aided by a slightly higher average price.

Historical S&P 500 buyback data can be found at: www.marketattributes.standardandpoors.com.

S&P Indices

S&P 500, $ U.S. BILLIONS

PERIOD

MARKET

OPERATING

AS REPORTED





DIVIDEND &


VALUE

EARNINGS

EARNINGS

DIVIDENDS

BUYBACKS

DIVIDEND

BUYBACK

BUYBACK


$ BILLIONS

$ BILLIONS

$ BILLIONS

$ BILLIONS

$ BILLIONS

YIELD

YIELD

YIELD

3/31/2011 P

$12,068

$205.71

$195.33

$56.08

$89.84

1.76%

2.76%

4.52%

12/31/2010

$11,430

$199.40

$187.67

$54.85

$86.36

1.80%

2.61%

4.42%

09/30/2010

$10,336

$195.28

$176.80

$51.26

$79.56

1.94%

2.52%

4.45%

06/30/2010

$9,323

$189.04

$178.00

$50.44

$77.64

2.10%

2.31%

4.41%

03/31/2010

$10,560

$175.00

$157.85

$49.28

$55.26

1.83%

1.54%

3.36%

12/31/2009

$9,928

$152.77

$135.14

$49.04

$47.82

1.97%

1.39%

3.36%

09/30/2009

$9,337

$139.37

$130.37

$47.21

$34.85

2.24%

1.48%

3.71%

06/30/2009

$8,045

$120.85

$118.22

$47.63

$24.20

2.77%

2.40%

5.17%

03/31/2009

$6,928

$87.78

$65.29

$51.73

$30.78

3.43%

3.70%

7.13%

12/31/2008

$7,852

-$0.78

-$202.11

$62.19

$48.12

3.15%

4.33%

7.48%

09/30/2008

$10,181

$142.90

$86.16

$61.44

$89.71

2.48%

4.26%

6.73%

06/30/2008

$11,163

$148.43

$112.15

$61.94

$87.91

2.26%

4.62%

6.88%

03/30/2008

$11,511

$144.63

$135.24

$61.72

$113.90

2.17%

5.08%

7.25%

12/31/2007

$12,868

$133.38

$68.53

$67.09

$141.71

1.92%

4.58%

6.49%

09/30/2007

$13,470

$184.13

$133.66

$61.21

$171.95

1.79%

4.10%

5.89%

06/30/2007

$13,350

$213.65

$194.30

$59.76

$157.76

1.76%

3.67%

5.44%

03/31/2007

$12,706

$200.23

$190.75

$58.53

$117.70

1.81%

3.54%

5.35%

12/31/2006

$12,729

$197.35

$181.65

$61.79

$105.18

1.77%

3.39%

5.16%



S&P Indices

S&P 500 20 LARGEST Q1 2011 BUYBACKS, $ MILLIONS

Company

SECTOR

Q1 2011

BUYBACKS




Q4,'04-Q1,'11

Exxon Mobil Corp

Energy

$5,653

$157,500

International Business Machines

Information Technology

$4,045

$73,029

Intel Corp

Information Technology

$4,006

$34,717

Hewlett-Packard Co

Information Technology

$2,686

$52,958

Wal-Mart Stores

Consumer Staples

$2,129

$33,332

ConocoPhillips

Energy

$1,636

$23,604

The Goldman Sachs Group

Financials

$1,481

$32,121

Pfizer Inc

Healthcare

$1,430

$23,105

DIRECTV

Consumer Discretionary

$1,405

$14,408

McDonald's Corp

Consumer Discretionary

$1,371

$17,985

Philip Morris International

Consumer Staples

$1,308

$17,219

The Home Depot

Consumer Discretionary

$1,301

$25,200

The Travelers Co

Financials

$1,148

$15,785

The Coca-Cola Co

Consumer Staples

$1,129

$13,263

Lowe's Companies

Consumer Discretionary

$1,031

$8,947

Cisco Systems

Information Technology

$1,014

$50,690

Procter & Gamble Co

Consumer Staples

$1,008

$53,769

Time Warner Inc

Consumer Discretionary

$959

$26,497

EMC Corporation

Information Technology

$868

$9,598

Microsoft Corporation

Information Technology

$848

$97,938

Top 20


$36,456

$781,665

S&P 500


$89,837

$2,302,533

Top 20 % of S&P 500


40.58%

33.95%



About S&P Indices

S&P Indices, a world leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.25 trillion is directly indexed to Standard & Poor's family of indices, which includes the S&P 500, the world's most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry's most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit www.standardandpoors.com/indices.    

Standard & Poor's does not sponsor, endorse, sell or promote any S&P index-based investment product. This document does not constitute an offer of services in jurisdictions where Standard & Poor's or its affiliates do not have the necessary licenses. Standard & Poor's receives compensation in connection with licensing its indices to third parties. It is not possible to directly invest in an index.

SOURCE Standard & Poor's



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