A Snapshot Of S&P 500 Index Stock Buybacks

Bob Carey
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A Snapshot Of S&P 500 Index Stock Buybacks

Posted Under: Sectors

View from the Observation Deck

S&P 500 Index stock buybacks totaled $205.81 billion (preliminary) in Q1'19, up 8.9% from the $189.05 billion spent in Q1'18, according to S&P Dow Jones Indices.
In Q1'19, seven sectors increased their buyback activity year-over-year, while four reduced spending on buybacks.
As indicated in the chart, Information Technology was by far the most active sector with respect to buyback activity in Q1'19. Technology companies repurchased stock valued at $67.99 billion, up 7.2% from the $63.42 billion spent in Q1'18. Tech accounted for 33.0% of total S&P 500 Index buybacks in Q1'19. Financials and Health Care followed with buybacks totaling $42.85 billion and $30.75 billion, respectively.
S&P 500 Index companies spent $3.03 trillion and $4.88 trillion on buybacks, respectively, for the five- and 10-year periods ended 3/29/18 (not shown in chart), according to S&P Dow Jones Indices.
The three most active sectors for both the 5- and 10-year periods ended 3/29/19 were Information Technology ($840.67 billion/$1.284 trillion), Financials ($573.42 billion/$777.33 billion) and Consumer Discretionary ($432.67 billion/$715.39 billion).

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 an unmanaged index of 500 stocks 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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Posted on Tuesday, June 25, 2019 @ 2:10 PM • Post Link

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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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