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Bob Carey
Chief Market Strategist
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  Stock Buybacks by Sector
Posted Under: Sectors
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View from the Observation Deck  
  1. S&P 500 Index stock buybacks totaled an all-time high of $203.76 billion (preliminary) in Q3'18, up 57.7% from the $129.17 billion spent on buybacks in Q3'17, according to S&P Dow Jones Indices.
  2. For the 12-month period ended September 2018, buybacks totaled a record high $720.4 billion, up 39.2% from the $517.7 billion repurchased over the same period through September 2017.
  3. S&P Dow Jones Indices reported that S&P 500 Index companies spent $2.89 trillion on buybacks for the five-year period ended 9/28/18. 
  4. As indicated in the chart, Information Technology was the most active sector with respect to buyback activity over the past five years. Technology companies repurchased stock valued at $795.1 billion, or approximately 28% of total buybacks for the S&P 500 Index. Financials and Consumer Discretionary followed with buybacks totaling $519.3 billion and $426.0 billion, respectively.  
  5. In addition to stock buybacks, S&P 500 companies are also rewarding shareholders through higher dividend distributions (not shown in chart). S&P 500 Index dividend payments totaled a record high $115.72 billion in Q3'18, according to S&P Dow Jones Indices.  
This chart is for illustrative purposes only and not indicative of any actual investment. Investors cannot invest directly in an index. The S&P 500 Index is a capitalization-weighted index comprised of 500 stocks (currently 505) used to measure large-cap U.S. stock market performance, while the 11 major S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector.

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The next blog post will resume Thursday, January 3, 2019.
Posted on Thursday, December 20, 2018 @ 2:04 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
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