Share buybacks have been helping keep the bull market afloat - these 8 companies have contributed the most

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Share buybacks have been helping keep the bull market afloat - these 8 companies have contributed the most

stock market finance

Spencer Platt/Getty Images

Over the decade, S&P 500 companies bought back $4.4 trillion shares, including the record-breaking buybacks from Apple that totaled $226.6 billion.

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  • Companies who were flush with cash started to buy back shares after the S&P 500 started to recover from the global financial crisis.
  • Buybacks cut a company's total share count, and spread the profits over fewer shares, boosting their per-share earnings.
  • Over the past decade, S&P 500 companies bought back $4.4 trillion shares, including the record-breaking buybacks from Apple that totaled $226.6 billion.
  • Share buybacks are expected to continue growing for the coming months, according to an analyst from S&P Dow Jones Indices.

For the 9-1/2-year equity bull run, share buybacks have been a solid backbone of the stock market's continued growth. Buybacks cut a company's total share count, and spread the profits over fewer shares, boosting their per-share earnings and satisfying Wall Street.

After the S&P 500 started to recover from its financial crisis low in March 2009, companies that were flush with cash started to buy back shares. According to S&P Dow Jones Indices, S&P 500 companies have bought back $4.4 trillion shares over the past decade, including the record-breaking buybacks from Apple that totaled $226.6 billion. No company has bought back more shares than Apple, which announced in March 2012 it would use a large chunk of cash to make the purchases.

The amount in share repurchases executed by S&P 500 companies hit a record of $190.6 billion in the second quarter, a 58.7 % year-over-year increase, and that number is expected to keep growing for the coming months, according to S&P Dow Jones Indices.

"Given the record earnings, strong cash-flow, investor demand and corporate statements, the indications are that the high level will continue for the rest of the year," said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

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Here are the top eight companies that contributed $689.4 billion, or 16% of the total S&P global 500 companies buybacks, mostly from the information technology and financial sectors.

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8. Home Depot

8. Home Depot

Ticker: HD

Sector: Consumer Discretionary

Market cap: $243.5 billion

10-year buybacks: $50.7 billion

Source: S&P Dow Jones Indices

7. Intel

7. Intel

Ticker: INTC

Sector: Information Technology

Market cap: $216.9 billion

10-year buybacks: $55 billion

Source: S&P Dow Jones Indices

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6. Wells Fargo

6. Wells Fargo

Ticker: WFC

Sector: Financials

Market cap: $272.1 billion

10-year buybacks: $56.4 billion

Source: S&P Dow Jones Indices

5. JPMorgan

5. JPMorgan

Ticker: JPM

Sector: Financials

Market cap: $399.2 billion

10-year buybacks: $62.8 billion

Source: S&P Dow Jones Indices

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4. Oracle

4. Oracle

Ticker: ORCL

Sector: Information Technology

Market cap: $190 billion

10-year buybacks: $67.1 billion

Source: S&P Dow Jones Indices

3. Cisco Systems

3. Cisco Systems

Ticker: CSCO

Sector: Information Technology

Market cap: $227.5 billion

10-year buybacks: $67.9 billion

Source: S&P Dow Jones Indices

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2. Microsoft

2. Microsoft

Ticker: MSFT

Sector: Information Technology

Market cap: $878.6 billion

10-year buybacks: $102.8 billion

Source: S&P Dow Jones Indices

1. Apple

1. Apple

Ticker: AAPL

Sector: Information Technology

Market cap: $1.1 trillion

10-year buybacks: $226.6 billion

Source: S&P Dow Jones Indices

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