S&P 500 Buybacks & Dividends - Yardeni Research

1 Corporate Finance Briefing:S&P 500 Buybacks &DividendsYardeni Research , 1, 2022Dr. Edward visit our sites outside the boxTable Of ContentsTable Of ContentsTable Of ContentsJuly 1, 2022 / S&P 500 Buybacks & Dividends Research , & Dividends3-6 Buybacks7S&P 1500/500/400/600 Divisors8 Buybacks & Dividends9 Buybacks & Dividends as % of Operating Earnings10S&P 500 Sectors Quarterly Buybacks11S&P 500 Sectors Cumulative Buybacks Since Q1-200912S&P 500 Sectors Quarterly Dividends13S&P 500 Sectors Fuor Quarter Buybacks14S&P 500 Sectors Quarterly Buybacks +Dividends151999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024501502503504505506507508509501050115 0125050150250350450550650750850950105011 501250S&P 500 Buybacks (billion dollars, annualized)Q1Q1 Actual x 4 ( )4-Quarter Sum ( )

2 Source: Standard & Poor 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024501001502002503003504004505005506005 0100150200250300350400450500550600S&P 500 Dividends (billion dollars, annualized)Q2 Actual x 4 ( )4-Quarter Sum ( )Source: Standard & Poor & DividendsPage 3 / July 1, 2022 / S&P 500 Buybacks & Dividends Research , 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024050100150200250300050100150200250300 S&P 500 Buybacks (billion dollars, quarterly, nsa)Q1 Source: Standard & Poor 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024025507510012515017502550751001251501 75S&P 500 Dividends (billion dollars, quarterly)Q2 Source: Standard & Poor & DividendsPage 4 / July 1, 2022 / S&P 500 Buybacks & Dividends Research , 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024012345012345Q2Q1 JunQ2S&P 500 Dividends & Buybacks (trillion dollars, annualized)Q1 BuybacksDividendsS&P 500 IndexSource.

3 Standard & Poor 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20240246810120246810126/24 JunS&P 500 Buybacks (billion dollars, annualized)S&P 500 FORWARD EARNINGS YIELD & CORPORATE BOND YIELD(percent)BoFA Merrill Lynch AAAC orporate Bond Yield ( )S&P 500 Forward Earnings Yield* ( )* Forward earnings (time-weighted average of consensus operating earnings estimates for current and next year) divided by S&P 500 stock price : Thomson Reuters I/B/E/S, Standard & Poor s and Bank of America Merrill & DividendsPage 5 / July 1, 2022 / S&P 500 Buybacks & Dividends Research , 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024020040060080010001200140016001800020 040060080010001200140016001800Q1S&P 500 Buybacks & Dividends (billion dollars, annualized)Total* ( )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 2024100300500700900110010030050070090011 00Q1 Buybacks * ( )

4 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 2024100200300400500600100200300400500600 Q2 Dividends * ( )*4-quarter : Standard & Poor & DividendsPage 6 / July 1, 2022 / S&P 500 Buybacks & Dividends Research , 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 -1200-1000-800-600-400-2000200400600 -1200-1000-800-600-400-2000200400600Q1Q1 TOTAL GROSS ISSUANCE OF STOCKS MINUS S&P 500 Buybacks (billion dollars)Total Gross Issuanceof Stocks MinusS&P 500 Buybacks (annualized)Corporate Equities: Net IssuanceNonfinancial Corporate Business(4-quarter sum)Source.

5 Federal Reserve Board and Standard & Poor s 7 / July 1, 2022 / S&P 500 Buybacks & Dividends Research , 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26380004000042000440004600048000500007/1 S&P 1500 DIVISOR*96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26-6-4-2024687/1S&P 1500 DIVISOR*(y/y percent change)96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 267250775082508750925097507/1S&P 500 DIVISOR*96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26-4-202468107/1S&P 500 DIVISOR*(y/y percent change)96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26500100015002000250030007/17/1S&P 400 MIDCAP DIVISOR*96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26-25-20-15-10-505107/1S&P 400 MIDCAP DIVISOR*(y/y percent change)

6 96 98 00 02 04 06 08 10 12 14 16 18 20 22 24 2650010001500200025007/1S&P 600 SMALLCAP DIVISOR** 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 : Standard & Poor s 98 00 02 04 06 08 10 12 14 16 18 20 22 24 26-20-15-10-505107/1S&P 600 SMALLCAP DIVISOR*(y/y percent change) 1500/500/400/600 DivisorsPage 8 / July 1, 2022 / S&P 500 Buybacks & Dividends Research , 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 2024012345678012345678Q1Q1Q2S&P 500 YIELD FROM Buybacks & DIVIDENDSB uybacks + Dividends (billion dollars, trailing four-quarter)( )Yield (%) Buybacks ( ) Dividends ( ) Buybacks + Dividends ( )Source.

7 Standard & Poor 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 500 Buybacks (billion dollars, quarterly) Buybacks as a % ofS&P 500 Market Cap ( )Source: Standard & Poor & DividendsPage 9 / July 1, 2022 / S&P 500 Buybacks & Dividends Research , 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 202450751001251505075100125150Q1S&P 500 Buybacks , Dividends , & OPERATING EARNINGS(billion dollars, trailing four-quarter) Buybacks ( ) Dividends ( )Operating Earnings ( ) Buybacks + Dividends ( ) Buybacks +Dividendsas percent ofOperating Earnings ( )Source.

8 Standard & Poor 500 EX-ENERGY Buybacks , Dividends , & OPERATING EARNINGS(billion dollars, trailing four-quarter) Buybacks ( ) Dividends ( )Operating Earnings ( ) Buybacks + Dividends ( ) Buybacks +Dividendsas percent ofOperating Earnings ( )Capped at 150% due to extreme : Standard & Poor & Dividends as % of Operating EarningsPage 10 / July 1, 2022 / S&P 500 Buybacks & Dividends Research , 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24050100150200250300Q1S&P 500 SECTORS Buybacks (quarterly, billion dollars)Total ( )07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2401020304050Q1 HEALTH CARE( )07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2401020304050Q1 COMMUNICATION SERVICES( )07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24051015202530Q1 INDUSTRIALS( )

9 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2401020304050Q1 CONSUMER DISCRETIONARY( )07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24020406080100Q1 INFORMATION TECHNOLOGY( )07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240510152025Q1 CONSUMER STAPLES( )07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24024681012Q1 MATERIALS( )07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24051015202530Q1 ENERGY( )07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 ESTATE( )07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2401530456075Q1 FINANCIALS( )Note: Real Estate sector data start.

10 Standard & Poor 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240246810Q1 UTILITIES( ) 500 Sectors Quarterly BuybacksPage 11 / July 1, 2022 / S&P 500 Buybacks & Dividends Research , 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240150030004500600075009000Q1S&P 500 SECTORS CUMULATIVEBUYBACKS SINCE Q1-2009(quarterly, billion dollars)Total ( )09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2402004006008001000Q1 HEALTH CARE( )09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24075150225300375450Q1 COMMUNICATION SERVICES( )09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240150300450600750Q1 INDUSTRIALS( )09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2402004006008001000Q1 CONSUMER DISCRETIONARY( )09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2405001000150020002500Q1 INFORMATION TECHNOLOGY( )09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240150300450600Q1 CONSUMER STAPLES( )