Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  Dividends And Stock Buybacks Are In Recovery Mode
Posted Under: Stock Dividends

 
View from the Observation Deck  
  1. Companies have a number of ways in which to return capital to their shareholders. Two of the more popular ways in recent years are cash dividends and stock buybacks. 
  2. Today's blog post shows a recovery underway in both dividend distributions and stock buybacks, as measured by the S&P 500 Index.  
  3. For comparative purposes, we include the dividend distributions and share buybacks for the past eight quarters. 
  4. The all-time high for the S&P 500 Index's quarterly dividend payout was the $127.0 billion distributed in Q1'20 (onset of COVID-19 pandemic), according to data from S&P Dow Jones Indices. 
  5. The record for quarterly stock buybacks was the $223.0 billion registered in Q4'18 (not in chart), according to data from S&P Dow Jones Indices.
  6. The S&P 500 Index's dividend payout of $123.9 billion in Q1'21, while up from the previous three quarters, was still down on a year-over-year basis (see chart). 
  7. The $178.1 billion in buyback activity posted in Q1'21 was also higher than in the previous three quarters, but lower than a year ago (see chart). 
  8. As of 6/17/21, the S&P 500 Index sectors contributing the most to its total dividend payout were as follows: Information Technology (17.2%); Health Care (15.1%); Financials (13.8%); and Consumer Staples (11.1%), according to S&P Dow Jones Indices.
  9. As of Q1'21, the S&P 500 Index sectors that were most aggressive in repurchasing their stock were as follows (% of all stocks repurchased): Information Technology (31.6%); Financials (19.9%); Communication Services (12.2%); and Health Care (11.5%), according to S&P Dow Jones Indices.
  10. Overall, the companies in the S&P 500 Index are still flush with cash. Cash holdings, which include short-term investments and long-term marketable securities, reached $2.03 trillion in May 2021. The sectors holding the most cash were as follows: Information Technology ($587.7 billion); Communication Services ($345.2 billion); Consumer Discretionary ($294.9 billion); and Health Care ($288.4 billion); according to Bloomberg. 
This chart is for illustrative purposes only and not indicative of any actual investment. There can be no assurance that any of the projections cited will occur. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.

Download a PDF of this post, please click here.
Posted on Tuesday, June 22, 2021 @ 1:32 PM • Post Link Share: 
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.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
US Stock Markets Ended June 18, 2021
US Economy and Credit Markets Ended June 18, 2021
How Internet Stocks Have Fared Since The End Of 2002
How Bonds Have Fared Since 8/4/20
US Stock Markets Ended June 11, 2021
US Economy and Credit Markets Ended June 11, 2021
A Snapshot Of The Growth In ETF/ETP Assets
A Snapshot of Growth vs. Value Investing
US Stock Markets Ended June 4, 2021
US Economy and Credit Markets Ended June 4, 2021
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2021 All rights reserved.