Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  S&P 500 Index Dividends & Stock Buybacks
Posted Under: Stock Dividends
Supporting Image for Blog Post

 

View from the Observation Deck
Today’s post tracks quarterly changes in capital distributed to shareholders through dividend distributions and stock buybacks over a two-year period. Aside from several outliers, dividend distributions have steadily increased over today’s set of observations. Comparatively, share buybacks continue to account for a larger share of total capital disbursements but exhibit greater variance.

  • Combined, stock dividends and share buybacks totaled a record $1.65 trillion (preliminary data) over the trailing 12-months ended in June 2025, up from $1.48 trillion over the same period ended in June 2024.

  • Dividend distributions increased to $165.2 billion in Q2’25, down from the record of $167.6 billion in Q4’24, but up from $153.4 billion in Q2’24. In total, the companies that comprise the S&P 500 Index (“Index”) distributed a record $653.9 billion in dividend payments over the trailing 12-months ended June 2025.

  • Stock buybacks totaled $234.6 billion in Q2’25, a decline of 20.1% from the record of $293.5 billion in Q1’25. Buybacks totaled $997.8 billion over the trailing 12-months ended June 2025, up from $877.5 billion over the same time frame last year. By contrast, the Index’s stock buybacks totaled a record $1.005 trillion over the trailing 12-months ended June 2022.

  • In Q2’25, the S&P 500 Index sectors that were most aggressive in repurchasing their stock were as follows (% of all stocks repurchased): Information Technology (28.6%); Financials (22.1%); and Communication Services (16.5%), according to data from S&P Dow Jones Indices.

Takeaway: Buybacks declined sharply in Q2’25, reflective of unpredictable economic policy and tariff concerns, as well as weakening economic data. Overall, just 67.6% of Index constituents participated in share repurchases in Q2’25, down from 76.8% in Q1’25. Buyback concentration remains high. S&P Dow Jones Indices reported that the top 20 companies accounted for 51.3% of all repurchases in Q2’25, up from 48.4% in Q1’25 and above the historical average of 47.7%. Utilities were the only sector to increase buyback expenditures in Q2’25. Even so, the sector accounted for just 0.4% ($0.93 billion) of total expenditures over the period. Despite the second quarter’s decline, Howard Silverblatt, Senior Index Analyst at S&P Dow Jone Indices believes that buybacks will return to near-record levels in Q3’25, citing clearer policy direction, increased buyback requirements to cover employee options, and price support. We will report back when third quarter data becomes available. 

This chart is for illustrative purposes only and not indicative of any actual investment. 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 companies used to measure large-cap U.S. stock market performance. The 11 major sector indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector.

To Download a PDF of this post, please click here.

Posted on Thursday, October 2, 2025 @ 4:15 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.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Monthly Talking Points
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
A Snapshot of Bond Valuations
Technology Stocks and Semiconductors
Growth Vs. Value Investing
An Update on Covered Call Returns
Gold, Silver, and the Miners
Growth vs. Value Investing (Small-Caps)
Financial Exuberance?
S&P 500 index dividend payout vs stock buybacks
Corporate Earnings Estimates Signal Strength Ahead
A Snapshot of the S&P 500 Index Earnings Beat Rate
Archive
Skip Navigation Links.
Expand 20252025
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011

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.
Follow First Trust:  
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 © 2025 All rights reserved.