S&P 500 Quarterly Stock Buybacks Back to $100 Billion Level; Q2 2011 Buybacks Up 21.6% from Q1 2011

Share Count Remains Flat As Few Companies Reduce Outstanding Shares

Sep 20, 2011, 10:00 ET from Standard & Poor's

NEW YORK, Sept. 20, 2011 /PRNewswire/ -- S&P Indices announced today that preliminary results show that S&P 500 stock buybacks increased 21.6% to $109.2 billion during the second quarter of 2011, up from the $89.8 billion registered during the first quarter of 2011 and up 40.7% from the $77.6 billion posted in the second quarter of 2010. The 2nd quarter represents the eighth consecutive quarterly increase for stock buybacks.

"Companies returned to the $100 billion quarterly buyback level in the second quarter as they continued to match and control employee options, thereby protecting their earnings per share," says Howard Silverblatt, Senior Index Analyst at S&P Indices. "At this point, companies are continuing to use buybacks to prevent earnings dilution from 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 from late 2005 through mid-2007."

On a sector basis, Silverblatt notes that the Information Technology sector continues to dominate the buyback market. For the second quarter of 2011, Information Technology issues accounted for 22.2% of all buybacks, down slightly from the 23.4% registered during the first quarter of 2011. Financials posted the largest increase, spending $14.4 billion for the quarter - a 95.7% increase over the $7.3 billion expenditure in the first quarter.

Exxon Mobil continues to be the poster child for share repurchases, spending $5.5 billion on buybacks during the second quarter, compared to $5.7 billion during the first quarter of 2011. Ironically, it is this buyback program, which reduced Exxon's share count by 18.5% over the past five-years ($129 billion), which may cost it its position as the largest company in the world. Trailing behind Exxon is Hewlett-Packard Company with $4.6 billion in share repurchases, International Business Machines with $4.0 billion, JP Morgan Chase & Company with $3.5 billion, and CononoPhillips at $3.1 billion.

For the third quarter of 2011, Silverblatt expects companies to maintain the $110 billion buyback level, protecting their earnings and adding a slight tailwind for the third quarter as they reduce share count. Silverblatt adds: "The fourth quarter will depend, as so many things will, on the economy."

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

06/30/2011Prelim

$12,021

$226.20

$202.44

$59.03

$109.24

1.84%

3.04%

4.88%

3/31/2011

$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 Q2 2011 BUYBACKS, $ MILLIONS




Company

SECTOR

Q2 2011

BUYBACKS




Q4,'04-Q2,'11

Exxon Mobil Corp

Energy

$5,512

$163,012

Hewlett-Packard Co

Information Technology

$4,641

$57,599

International Business Machines

Information Technology

$3,976

$77,005

JPMorgan Chase & Co

Financials

$3,480

$21,352

ConocoPhillips

Energy

$3,149

$26,753

BlackRock, Inc

Financials

$2,548

$3,511

Express Scripts

Healthcare

$2,516

$6,730

Procter & Gamble Co

Consumer Staples

$2,503

$56,272

Pfizer Inc

Healthcare

$2,249

$25,354

Intel Corp

Information Technology

$2,174

$36,891

Philip Morris International

Consumer Staples

$1,614

$18,833

DIRECTV

Consumer Discretionary

$1,508

$15,916

The Goldman Sachs Group

Financials

$1,499

$33,620

Walt Disney Co

Consumer Discretionary

$1,427

$23,654

Wal-Mart Stores Inc

Consumer Staples

$1,411

$34,743

Lowe's Companies Inc

Consumer Discretionary

$1,402

$10,349

Cisco Systems, Inc

Information Technology

$1,332

$52,022

Microsoft Corp

Information Technology

$1,256

$99,194

Dell Inc

Information Technology

$1,130

$20,396

Visa, Inc

Information Technology

$1,064

$18,692

Top 20


$46,391

$801,897

S&P 500


$109,244

$2,302,533

Top 20 % of S&P 500


42.47%

34.83%



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