Bank of America Corp
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Financials : Banks | Large Cap Value
Company profile

Bank of America Corporation is a bank holding company and a financial holding company. The Company is a financial institution, serving individual consumers and others with a range of banking, investing, asset management and other financial and risk management products and services. The Company, through its banking and various non-bank subsidiaries, throughout the United States and in international markets, provides a range of banking and non-bank financial services and products through four business segments: Consumer Banking, which comprises Deposits and Consumer Lending; Global Wealth & Investment Management, which consists of two primary businesses: Merrill Lynch Global Wealth Management and U.S. Trust, Bank of America Private Wealth Management; Global Banking, which provides a range of lending-related products and services; Global Markets, which offers sales and trading services, and All Other, which consists of equity investments, residual expense allocations and other.

Closing Price
$28.11
Day's Change
1.33 (4.97%)
Bid
--
Ask
--
B/A Size
--
Day's High
29.01
Day's Low
27.88
Volume
(Heavy Day)
Volume:
118,767,892

10-day average volume:
88,272,532
118,767,892

S&P 500 buybacks up 3.2% in Q4 2019; Full Year 2019 down 9.6% from record 2018, as companies brace for a more volatile 2020

8:15 am ET March 24, 2020 (PR Newswire) Print

S&P Dow Jones Indices ("S&P DJI") announced today that preliminary Q4 2019 S&P 500(R) stock buybacks, or share repurchases, were $181.6 billion - a 3.2% increase over Q3 2019's $175.9 billion, but down 18.6% from Q4 2018's $223.0 billion record.

Historical data on S&P 500 buybacks are available at www.spdji.com/indices/equity/sp-500.

Key Takeaways:

-- Companies posted their second consecutive quarter of increased buyback expenditures after two quarters of declines from the record Q4 2018 expenditures. For the quarter, S&P 500 companies spent $181.6 billion on buybacks, up 3.2% from their Q3 2019 $175.9 billion mark, but down 18.6% from last year's record Q4 2018 expenditure of $223.0 billion.

-- For the full year 2019, companies spent $728.7 billion, down 9.6% from the record 2018 $806.4 billion ($519.4 billion in 2017), and ranking second highest in index history. The cumulative rolling four quarters of repurchases continued to impact EPS, as 20.8% of the issues reduced share counts by at least 4% year-over-year, down from Q3 2019's 22.8%, but up from the 18.7% of Q4 2018.

-- S&P 500 Q4 2019 dividends set a quarterly record, increasing to $126.4 billion, up 5.5% from Q4 2018's $119.8 billion; for 2019, dividends set a record with $485.5 billion, up 6.4% from the prior record, set in 2018, at $456.3 billion.

-- Total shareholder return of buybacks and dividends for the quarter came in at $307.9 billion, up 3.0% from the Q3 2019 period expenditure of $299.0 billion and down 10.2% from the record $342.8 billion reported for Q4 2018.

-- Total shareholder return for 2019 declined to $1.214 trillion from 2018's record $1.263 trillion.

-- Buybacks continued to be top heavy, with the top 20 issues accounting for 55% of the expenditures, up from last quarter's 50.4% and the largest since the 59.8% in Q1 2010. The ten-year average is 44.9%.

"After lowering expenditures in the first half of 2019 from their tax-inspired record-setting buying spree of 2018, companies increased their share repurchases in Q3 by 6.3% and in Q4 by 3.2%," said Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices. "While the levels are still shy of the 2018 record, they are significantly higher than the pre-2018 levels, and continued to surpass the hoped for $170 billion mark, which was seen as the level needed to support stocks and continue reduced share count EPS growth."

2020 Outlook:

"COVID-19 has significantly changed the 2020 landscape, as dividends are under pressure and buybacks appear to be gasping for air," said Silverblatt, who pointed out that buybacks must now compete with other corporate priorities as uncertainty over liquidity is at its highest since the 2008 financial crisis. For 2020:

-- Buybacks appear to have moved to the backburner for most issues as companies appear to have reordered their short-term priorities:

-- Controlling liquidity.

-- Maintaining business operations and retaining employees.

-- Uncertainty over the length of virus and depth of the economic impact.

-- Pre-COVID-19 estimates predicted 2020 buybacks would come close to or exceed the $806 billion record set in 2018. Today:

-- Q1,'20 buybacks are expected to be down significantly.

-- Q2,'20 is expected to be dismal, with corporate participation light.

-- For 2020, buybacks may see a complete reversal of the 2018 buyback bonanza.

-- Once the market believes we have hit bottom, buybacks may be slow to come back as companies set their catch-up priorities and may stringently control expenditures amidst:

-- Potential restrictions on buybacks through government programs.

-- Public image of buybacks when the economy is still recovering.

Q4 2019 GICS(R) Sector Analysis:

Information Technology buybacks reversed its prior two quarters of expenditure declines, spending $52.4 billion for the quarter, up 6.5% from the prior quarters $47.8 billion, but down 14.5% from the Q4 2018 $61.3 billion level. On a percentage basis, the sector represented 28.9% of all buybacks, up from the prior quarters 28.0%. For the year, the group spent $224.8 billion, representing 30.9% of the buybacks, down 19.3% from the 2018 $278.5 billion expenditure, which represented 34.5% of the buybacks.

Financials remained right behind Information Technology as they increased expenditures 5.1% to $50.2 billion, up from last quarter's $47.8 billion, representing 27.6% of all buybacks, up from 27.2% in Q3 2019. For the year, the group spent $178.7 billion, representing 24.5% of all buybacks, up 19.1% from their 2018 expenditure of $150.1 billion, which represented 18.6% of the buybacks.

Health Care buybacks increased 25.2% to $20.0 billion from last quarter's 16.0 billion, as the full year declined 22.8% to $83.9 billion from $108.7 billion in 2018.

Issues:

The five issues with the highest total buybacks for Q4 2019 are:

-- Apple (AAPL) continued to lead, spending $22.1 billion in Q4 2019, ranking 3rd in S&P 500 history, as the level was up 25.2% from their Q3 2019 $17.6 billion expenditure and over double the Q4 2018 $10.1 billion. For the year, Apple has spent $81.7 billion on buybacks, up from 2018's $74.2 billion. Over the five-year period, they have spent $264.3 billion and $342.0 billion over the ten-year period.

-- Bank of America (BAC): $7.7 billion for Q4 2019, up from $7.6 billion for Q3 2019; in 2019 they spent $28.1 billion, up from $20.1 billion in 2018.

-- Oracle (ORCL): $5.0 billion for Q4 2019, down from $5.5 billion in Q3 2019; 2019 was $26.9 billion down from $29.3 billion in 2018.

-- Wells Fargo (WFC): $7.4 billion for Q4 2019, down from their $7.5 billion Q3 2019 expenditure; 2019 was $24.8 billion, up from $21.0 billion for 2018.

-- JP Morgan (JPM): $6.8 billion for Q4 2019, down from the $6.9 billion spent in Q3 2019; 2019 was $24.0 billion, up from $20.0 billion for 2018.

For more information about S&P Dow Jones Indices, please visit www.spdji.com.

S&P Dow Jones Indices
S&P 500, $ U.S. BILLIONS  (preliminary and estimates in bold)
PERIOD       MARKET       OPERATING   AS REPORTED                                         DIVIDEND &
             VALUE        EARNINGS    EARNINGS    DIVIDENDS   BUYBACKS   DIVIDEND BUYBACK BUYBACK
             $ BILLIONS   $ BILLIONS  $ BILLIONS  $ BILLIONS  $ BILLIONS YIELD    YIELD   YIELD
2019         $26,759.69   $1,304.59   $1,158.72   $485.48     $728.74    1.81%    2.72%   4.54%
2018         $21,026.90   $1,281.66   $1,119.43   $456.31     $806.41    2.17%    3.84%   6.01%
2017         $22,821.24   $1,066.00   $940.86     $419.77     $519.40    1.84%    2.28%   4.12%
2016         $19,267.93   $919.85     $818.55     $397.21     $536.38    2.06%    2.78%   4.85%
2015         $17,899.56   $885.38     $762.74     $382.32     $572.16    2.14%    3.20%   5.33%
12/31/2019   $26,760      $324.35     $294.78     $126.35     $181.58    1.81%    2.72%   4.54%
9/30/2019    $24,707      $330.42     $282.12     $123.12     $175.89    1.94%    3.12%   5.06%
6/28/2019    $24,423      $333.26     $290.00     $118.68     $165.46    1.93%    3.27%   5.20%
3/29/2019    $23,619      $316.56     $291.82     $117.33     $205.81    1.97%    3.49%   5.45%
12/31/2018   $21,027      $293.82     $242.91     $119.81     $222.98    2.17%    3.84%   6.01%
9/30/2018    $24,579      $349.04     $306.70     $115.72     $203.76    1.81%    2.93%   4.75%
6/30/2018    $23,036      $327.53     $288.55     $111.60     $190.62    1.89%    2.80%   4.69%
3/29/2018    $22,496      $311.26     $281.28     $109.18     $189.05    1.90%    2.56%   4.46%
12/29/2017   $22,821      $288.93     $230.12     $109.46     $136.97    1.84%    2.28%   4.12%
9/29/2017    $21,579      $268.35     $243.68     $105.45     $129.17    1.92%    2.40%   4.32%
6/30/2017    $20,762      $261.39     $231.40     $104.01     $120.11    1.96%    2.41%   4.37%
3/31/2017    $20,276      $247.32     $235.65     $100.86     $133.15    1.98%    2.51%   4.49%
12/31/2016   $19,268      $240.11     $207.93     $103.82     $135.29    2.06%    2.78%   4.85%
9/30/2016    $18,742      $247.98     $219.46     $98.43      $112.20    2.10%    2.92%   5.01%
6/30/2016    $18,193      $222.77     $201.79     $98.30      $127.50    2.14%    3.22%   5.36%
3/31/2016    $17,958      $208.99     $189.37     $96.67      $161.39    2.15%    3.28%   5.43%
S&P Dow Jones Indices
S&P 500 SECTOR BUYBACKS
SECTOR $ MILLIONS          Q4,'19   Q3,'19   Q4,'18   12MoDec,'19 12MoDec,'18 5-YEARS    10-YEARS   Q4,'18   Q2,'09
                                                                                                    (high)   (recent low)
Consumer Discretionary     $16,620  $18,372  $25,652  $68,476     $86,674     $420,287   $754,092   $25,652  $2,350
Consumer Staples           $9,429   $7,509   $9,588   $33,838     $33,449     $206,448   $440,320   $9,588   $4,013
Energy                     $5,025   $4,880   $8,698   $18,750     $30,427     $82,926    $266,702   $8,698   $5,343
Financials                 $50,232  $47,789  $45,641  $178,685    $150,054    $652,120   $906,749   $45,641  $1,170
Healthcare                 $20,041  $16,007  $31,336  $83,864     $108,692    $415,445   $711,672   $31,336  $4,699
Industrials                $10,218  $14,181  $23,026  $60,792     $78,239     $348,870   $563,488   $23,026  $1,681
Information Technology     $52,432  $49,241  $61,298  $224,847    $278,526    $892,006   $1,410,197 $61,298  $4,757
Materials                  $3,117   $5,400   $5,857   $15,709     $14,391     $59,874    $116,194   $5,857   $159
Real Estate                $573     $694     $1,480   $2,230      $3,768      $10,601    $10,601    $1,480
Communication Services     $13,687  $11,028  $9,556   $38,192     $20,237     $65,665    $96,656    $9,556   $13
Utilities                  $211     $784     $850     $3,355      $1,952      $8,843     $18,082    $850     $10
TOTAL                      $181,583 $175,886 $222,980 $728,738    $806,408    $3,163,084 $5,294,754 $222,980 $24,195
SECTOR BUYBACK MAKEUP %    Q4,'19   Q3,'19   Q4,'18   12MoDec,'19 12MoDec,'18 5-YEARS    10-YEARS   Q4,'18   Q2,'09
Consumer Discretionary     9.15%    10.45%   11.50%   9.40%       10.75%      13.29%     14.24%     11.50%   9.71%
Consumer Staples           5.19%    4.27%    4.30%    4.64%       4.15%       6.53%      8.32%      4.30%    16.59%
Energy                     2.77%    2.77%    3.90%    2.57%       3.77%       2.62%      5.04%      3.90%    22.08%
Financials                 27.66%   27.17%   20.47%   24.52%      18.61%      20.62%     17.13%     20.47%   4.84%
Healthcare                 11.04%   9.10%    14.05%   11.51%      13.48%      13.13%     13.44%     14.05%   19.42%
Industrials                5.63%    8.06%    10.33%   8.34%       9.70%       11.03%     10.64%     10.33%   6.95%
Information Technology     28.88%   28.00%   27.49%   30.85%      34.54%      28.20%     26.63%     27.49%   19.66%
Materials                  1.72%    3.07%    2.63%    2.16%       1.78%       1.89%      2.19%      2.63%    0.66%
Real Estate                0.32%    0.39%    0.66%    0.31%       0.47%       0.34%      0.20%      0.66%    0.00%
Telecommunication Services 7.54%    6.27%    4.29%    5.24%       2.51%       2.08%      1.83%      4.29%    0.05%
Utilities                  0.12%    0.45%    0.38%    0.46%       0.24%       0.28%      0.34%      0.38%    0.04%
TOTAL                      100.00%  100.00%  100.00%  100.00%     100.00%     100.00%    100.00%    100.00%  100.00%
S&P Dow Jones Indices
S&P 500 20 LARGEST Q4 2019 BUYBACKS, $ MILLIONS
Company                Ticker          Sector                 Q4 2019   12-Months 12-Months 5-Year     10-Year    Indicated
                                                              Buybacks  Dec,'19   Dec,'18   Buybacks   Buybacks   Dividend
                                                              $ Million $ Million $ Million $ Million  $ Million  $ Million
Apple                  AAPL            Information Technology $22,085   $81,685   $74,246   $264,340   $342,031   $14,559
Bank of America        BAC             Financials             $7,748    $28,144   $20,094   $68,538    $73,433    $7,196
Wells Fargo            WFC             Financials             $7,386    $24,835   $20,964   $73,407    $94,602    $9,481
Bristol-Myers Squibb   BMY             Health Care            $7,000    $7,300    $320      $10,320    $14,958    $4,220
JPMorgan               JPM             Financials             $6,751    $24,001   $19,983   $74,092    $97,156    $11,291
Alphabet               GOOGL           Communication Services $6,098    $18,396   $9,075    $37,790    $38,708    $0
Microsoft              MSFT            Information Technology $5,206    $19,504   $16,300   $77,549    $117,704   $15,563
Citigroup              C               Financials             $5,127    $17,982   $10,327   $58,741    $63,012    $4,454
Oracle                 ORCL            Information Technology $5,036    $26,857   $29,306   $77,431    $109,871   $4,775
Intel                  INTC            Information Technology $3,523    $13,623   $10,730   $34,418    $69,168    $5,742
Procter & Gamble       PG              Consumer Staples       $3,504    $9,504    $4,754    $25,719    $56,097    $7,432
Home Depot             HD              Consumer Discretionary $3,056    $6,965    $9,963    $38,808    $64,416    $6,545
Visa                   V               Information Technology $2,517    $8,741    $7,914    $34,852    $48,690    $2,054
Charter Communications CHTR            Communication Services $2,305    $6,873    $4,399    $24,587    $25,371    $0
U.S. Bancorp           USB             Financials             $2,293    $4,525    $2,822    $14,724    $21,576    $2,883
Goldman Sachs Group    GS              Financials             $2,166    $6,080    $4,412    $30,828    $57,343    $1,967
Biogen                 BIIB            Health Care            $2,093    $5,868    $4,353    $17,586    $22,434    $0
Berkshire Hathaway     BRK.B           Financials             $2,043    $4,850    $1,346    $6,196     $6,263     $0
AT&T                   T               Communication Services $2,008    $2,417    $609      $4,270     $31,667    $15,194
Facebook               FB              Communication Services $1,923    $6,539    $16,087   $27,854    $31,679    $0
Top 20                                                        $99,868   $324,689  $268,004  $1,002,050 $1,386,179 $113,356
S&P 500                                                       $181,583  $728,738  $806,408  $3,163,084 $5,294,754 $553,760
Top 20 % of S&P 500                                           55.00%    44.55%    33.23%    31.68%     26.18%     20.47%
Gross values are not adjusted for float
S&P Dow Jones Indices
S&P 500 20 Largest Quarterly Buybacks, $ Millions, as of Q4 2019; Apple added at #3
$ MILLIONS           QUARTER              COMPANY                         SECTOR
$23,811              Q1 2019              Apple                           Information Technology 1
$22,908              Q1 2018              Apple                           Information Technology 2
$22,085              Q4 2019              Apple                           Information Technology 3
$21,860              Q2 2018              Apple                           Information Technology 4
$21,162              Q2 2006              QUALCOMM                        Information Technology 5
$19,364              Q3 2018              Apple                           Information Technology 6
$18,154              Q2 2019              Apple                           Information Technology 7
$18,036              Q1 2014              Apple                           Information Technology 8
$17,635              Q3 2019              Apple                           Information Technology 9
$17,319              Q3 2014              Apple                           Information Technology 10
$16,413              Q2 2013              Apple                           Information Technology 11
$15,707              Q3 2007              International Business Machines Information Technology 12
$13,420              Q3 2015              Apple                           Information Technology 13
$12,852              Q4 2013              Johnson & Johnson               Healthcare             14
$12,318              Q4 2016              Allergan plc (AGN)              Healthcare             15
$12,183              Q2 2012              Johnson & Johnson               Healthcare             16
$11,480              Q4 2016              Apple                           Information Technology 17
$11,133              Q4 2017              Apple                           Information Technology 18
$10,776              Q2 2016              Apple                           Information Technology 19
$10,724              Q2 2015              Apple                           Information Technology 20
S&P Dow Jones Indices
S&P 500 Q4 2019 Buyback Report
SECTOR                  DIVIDEND            BUYBACK          COMBINED
                        YIELD               YIELD            YIELD
Consumer Discretionary  2.01%               3.21%            5.22%
Consumer Staples        4.03%               1.95%            5.98%
Energy                  7.36%               3.07%            10.43%
Financials              3.22%               6.90%            10.11%
HealthCare              2.02%               2.50%            4.52%
Industrials             2.68%               3.26%            5.95%
Information Technology  1.53%               3.95%            5.49%
Materials               3.02%               2.97%            5.99%
Real Estate             3.60%               0.31%            3.91%
Communications Services 1.77%               1.88%            3.65%
Utilities               3.63%               0.43%            4.05%
S&P 500                 2.51%               3.30%            5.81%
Uses full values (unadjusted for float)
Dividends based on indicated; buybacks based on the last 12-months ending Q4,'19
Share Count Changes
(Y/Y diluted shares used for EPS) >=4%   !!!!=-4%
Q4 2019                           7.68%  20.81%
Q3 2019                           8.62%  22.85%
Q2 2019                           7.98%  24.15%
Q1 2019                           8.03%  24.90%
Q4 2018                           8.45%  18.71%
Q3 2018                           6.43%  17.67%
Q2 2018                           6.20%  15.60%
Q1 2018                           7.01%  13.63%
Q4 2017                           6.83%  15.06%
Q3 2017                           8.62%  14.23%
Q2 2017                           10.00% 14.00%
Q1 2017                           12.00% 14.80%
Q4 2016                           10.48% 19.35%

https://mma.prnewswire.com/media/1136881/SP_500_Dividends_vs_Buybacks.jpg

https://mma.prnewswire.com/media/1136880/SP_500_Quarterly_BuyBacks.jpg

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500(R) and the Dow Jones Industrial Average(R). More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

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