Bar chart shows dividend value and buybacks value juxtaposed with line showing free cash flow value.
Y-axis: Value (billions $); X-axis: 2000- Q4 2021
Free cash flow value in 2000/2001 was over $204.5 billion. From 2001 to 2004 it rose to roughly $442.6 billion, then rose more gradually to nearly $514 billion by 2009. By 2012 it had risen to nearly $630 billion and continued to rise, reaching more than $1 trillion in 2018/2019. By the end of Q4 2021, free cash flow value had risen to nearly $1.35 trillion. Table lists annual dividends and buybacks value and includes Q4 of 2021.
| Year | Dividends value (billions) | Buybacks value (billions) |
|---|---|---|
| 2000 | $141.6 | $171.0 |
| 2001 | $147.8 | $163.0 |
| 2002 | $156.0 | $167.2 |
| 2003 | $161.9 | $158.1 |
| 2004 | $210.9 | $235.4 |
| 2005 | $204.1 | $372.7 |
| 2006 | $258.3 | $532.9 |
| 2007 | $246.6 | $650.2 |
| 2008 | $247.9 | $367.5 |
| 2009 | $196.2 | $205.8 |
| 2010 | $205.3 | $308.1 |
| 2011 | $240.4 | $445.1 |
| 2012 | $281.6 | $391.8 |
| 2013 | $311.8 | $505.5 |
| 2014 | $380.4 | $575.2 |
| 2015 | $419.9 | $613.2 |
| 2016 | $438.0 | $541.1 |
| 2017 | $456.8 | $525.0 |
| 2018 | $484.9 | $796.9 |
| 2019 | $521.9 | $706.6 |
| 2020 | $526.3 | $527.7 |
| 2021 | $550.2 | $848.0 |
Sources: Pavilion Global Markets, S&P Global, and Wells Fargo Investment Institute. Annual data from January 1, 2000 to December 31, 2021. Dividends value, buybacks value, and free cash flow value are based on the S&P 500 Index. The S&P 500 Index is a market-capitalization-weighted index considered representative of the U.S. stock market. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results. YOY = year over year. Investing in stocks involves risk and their returns and risk levels can vary depending on prevailing market and economic conditions.
Key Takeaways
- Dividends and buybacks fell in 2020 as companies prioritized expenditures and protected liquidity reserves, but rebounded to near record levels in 2021.
- Dividends and buybacks likely will become a larger proportion of total return as price returns normalize with less monetary support.