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Second-Quarter 2016 Corporate Buyback Scorecard; Best & Worst Companies

The table below ranks the 305 companies in the S&P 500 that bought back at least 4 percent or more than $1 billion of their shares from June 30, 2014 to June 30, 2016. Numbers 1-10.

The table below ranks the 305 companies in the S&P 500 that bought back at least 4 percent or more than $1 billion of their shares from June 30, 2014 to June 30, 2016. The companies are ranked according to their return on investment from these repurchases. As calculated by Fortuna Advisors, a New York City-based consultancy that compiled the data for Institutional Investor, buyback ROI measures the overall rate of return of buybacks, based on the internal rate of return of the cash flows associated with them. Buyback strategy tracks the performance of the underlying stock in terms of annualized total shareholder return. Once Fortuna determines buyback ROI and buyback strategy, buyback effectiveness can then be calculated as simply the difference between the two, determined as compounded return.

The Best and Worst Corporate
Stock Buyback Programs
Best
CompanyIndustryMarket Capitalization$ Total Buyback$ Total
Buyback /
Market Cap
Buyback StrategyBuyback EffectivenessBuyback ROI
1NVIDIA Corp.Semiconductors and Semiconductor Equipment$25,103$1,4105.6%51.0%18.3%78.6%
2Tyson FoodsFood, Beverage and Tobacco$25,731$1,7977.0%28.4%24.4%59.7%
3Global PaymentsSoftware and Services$10,992$5364.9%46.6%1.5%48.9%
4Fortune Brands Home & SecurityCapital Goods$8,891$4284.8%20.6%19.9%44.6%
5Sysco Corp.Food and Staples Retailing$28,593$1,9496.8%18.3%21.9%44.3%
6Applied MaterialsSemiconductors and Semiconductor Equipment$26,107$3,04611.7%6.1%33.6%41.8%
7Avery Dennison Corp.Materials$6,666$5017.5%25.6%10.8%39.1%
8Martin Marietta MaterialsMaterials$12,197$7105.8%20.7%13.5%37.0%
9Masco Corp.Capital Goods$10,295$7437.2%31.2%2.5%34.4%
10Northrop Grumman Corp.Capital Goods$40,111$5,23113.0%34.5%(0.2%)34.2%

Worst
CompanyIndustryMarket Capitalization$ Total Buyback$ Total
Buyback /
Market Cap
Buyback StrategyBuyback EffectivenessBuyback ROI
1Seagate TechnologyTechnology Hardware and Equipment$7,271$2,17729.9%(29.4%)(31.2%)(51.5%)
2Micron TechnologySemiconductors and Semiconductor Equipment$14,270$1,0327.2%(35.4%)(16.5%)(46.1%)
3H&R BlockConsumer Services$5,072$2,06540.7%(11.4%)(38.7%)(45.7%)
4Western Digital Corp.Technology Hardware and Equipment$13,301$1,0307.7%(28.1%)(22.2%)(44.1%)
5CF Industries HoldingsMaterials$5,618$90016.0%(20.1%)(24.2%)(39.5%)
6Chipotle Mexican GrillConsumer Services$11,761$1,19910.2%(10.4%)(30.0%)(37.3%)
7The GapRetailing$8,445$1,58618.8%(25.5%)(15.6%)(37.2%)
8Macy'sRetailing$10,365$3,11030.0%(19.4%)(21.3%)(36.6%)
9NordstromRetailing$6,599$1,53523.3%(12.5%)(25.7%)(35.0%)
10National Oilwell VarcoEnergy$12,688$3,00023.6%(31.8%)(1.4%)(32.8%)

Top Manufacturers of EPS (*)
CompanyIndustryMarket Capitalization$ Total Buyback$ Total
Buyback /
Market Cap
Buyback StrategyBuyback EffectivenessBuyback ROI
1LyondellBasell Industries N.V.Materials$31,757$9,05928.5%(3.9%)(1.3%)(5.1%)
2Monsanto Co.Materials$45,250$10,00422.1%(6.2%)1.4%(4.9%)
3CBS Corp.Media$24,804$3,69014.9%(3.4%)7.7%4.0%
4The Travelers Cos.Insurance$34,414$6,13517.8%13.9%(2.0%)11.6%
5Ameriprise FinancialDiversified Financials$14,898$3,38122.7%(4.9%)(11.0%)(15.3%)
6Gilead SciencesPharmaceuticals, Biotechnology and Life Sciences$111,101$22,70220.4%7.7%(18.3%)(12.0%)
7Discover Financial ServicesDiversified Financials$22,091$3,58516.2%(1.6%)(1.6%)(3.2%)
8Varian Medical SystemsHealthcare Equipment and Services$7,829$1,00712.9%0.5%(1.3%)(0.9%)
9The PNC Financial Services GroupBanks$40,640$4,09110.1%2.6%(4.9%)(2.4%)
10Regions Financial Corp.Banks$10,780$1,22511.4%(4.6%)1.9%(2.8%)
* Manufacturers of EPS considers S&P threshold Cos. with low (negative) Earnings Growth but high reduction in share count to generate positive EPS Growth.

** EPS calculation = Quarterly Reported Net Income / Actual Quarter's Reported Total Shares Outstanding.

Source: Fortuna Advisors Analysis using data from the Capital IQ database. Financial Data from June 2014 to June 2016. Includes the 487 members of the current S&P 500 that were public for the full period.

Market Capitalization as of: 6/30/2016.

Cos. Included here if $ Total Buyback / Market Capitalization is greater than 4%

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