The process of share repurchases is a special way to give shareholder’s money back in a very tax-optimized way.
A low yielding stock with a 2 percent yield can lift the total yield via stock repurchases to 4 percent or so. For sure, share buybacks are no cash yields on your trading account; it’s an indirect way to reduce the current shares and lift the potential share price.
There is an index outside that covers some of the best stocks with share repurchases that bought at least 5 percent of its outstanding shares within the past 12 months.
Today I would like to screen the Buyback Achievers index by the best yielding stocks with a low forward P/E as well as a very low debt-to-equity ratio. Low debt is a good indicator for potential growth or additional share buybacks.
These are my criteria in detail:
- Positive Dividend Yield
- Forward P/E under 15
- Long-Term Debt-To-Equity below 0.2
- Member of the Buyback Achievers Index
In total, sixteen Buyback Achievers Index stocks fulfilled the above mentioned restrictions of which ten have a current buy or better rating.
Here are my favorite stocks:
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Corning (NYSE:GLW) has a market capitalization of $21.38 billion. The company employs 28,700 people, generates revenue of $8.012 billion and has a net income of $1.728 billion. Corning’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.465 billion. The EBITDA margin is 30.77 percent (the operating margin is 16.16 percent and the net profit margin 21.57 percent).
Financial Analysis: The total debt represents 11.77 percent of Corning’s assets and the total debt in relation to the equity amounts to 16.09 percent. Due to the financial situation, a return on equity of 8.12 percent was realized by Corning. Twelve trailing months earnings per share reached a value of $1.30. Last fiscal year, Corning paid $0.32 in the form of dividends to shareholders. Share Buyback Rate 3-Years: 1.3 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.22, the P/S ratio is 2.64 and the P/B ratio is finally 0.99. The dividend yield amounts to 2.76 percent and the beta ratio has a value of 1.37.
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| Long-Term Stock Price Chart Of Corning (GLW) |
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| Long-Term Dividend Payment History of Corning (GLW) |
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| Long-Term Dividend Yield History of Corning (GLW) |
Guess? (NYSE:GES) has a market capitalization of $2.54 billion. The company employs 15,200 people, generates revenue of $2.658 billion and has a net income of $181.49 million. Guess?’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $364.22 million. The EBITDA margin is 13.70 percent (the operating margin is 10.33 percent and the net profit margin 6.83 percent).
Financial Analysis: The total debt represents 0.60 percent of Guess?’s assets and the total debt in relation to the equity amounts to 0.94 percent. Due to the financial situation, a return on equity of 15.68 percent was realized by Guess?. Twelve trailing months earnings per share reached a value of $1.89. Last fiscal year, Guess? paid $0.80 in the form of dividends to shareholders. Share Buyback Rate 3-Years: 1.9 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.83, the P/S ratio is 0.95 and the P/B ratio is finally 2.33. The dividend yield amounts to 2.69 percent and the beta ratio has a value of 1.82.
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| Long-Term Stock Price Chart Of Guess? (GES) |
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| Long-Term Dividend Payment History of Guess? (GES) |
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| Long-Term Dividend Yield History of Guess? (GES) |
GameStop (NYSE:GME) has a market capitalization of $6.17 billion. The company employs 17,000 people, generates revenue of $8.886 billion and has a net income of $-269.80 million. GameStop’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $815.50 million. The EBITDA margin is 9.18 percent (the operating margin is -0.47 percent and the net profit margin -3.04 percent).
Financial Analysis: The total debt represents 0.00 percent of GameStop’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of -10.12 percent was realized by GameStop. Twelve trailing months earnings per share reached a value of $-2.29. Last fiscal year, GameStop paid $0.80 in the form of dividends to shareholders. Share Buyback Rate 3-Years: 9.0 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.65 and the P/B ratio is finally 2.56. The dividend yield amounts to 2.22 percent and the beta ratio has a value of 0.75.
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| Long-Term Stock Price Chart Of GameStop (GME) |
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| Long-Term Dividend Payment History of GameStop (GME) |
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| Long-Term Dividend Yield History of GameStop (GME) |
Abercrombie & Fitch (NYSE:ANF) has a market capitalization of $2.84 billion. The company employs 10,000 people, generates revenue of $4.510 billion and has a net income of $237.01 million. Abercrombie & Fitch’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $604.16 million. The EBITDA margin is 13.39 percent (the operating margin is 8.30 percent and the net profit margin 5.25 percent).
Financial Analysis: The total debt represents 2.14 percent of Abercrombie & Fitch’s assets and the total debt in relation to the equity amounts to 3.52 percent. Due to the financial situation, a return on equity of 12.64 percent was realized by Abercrombie & Fitch. Twelve trailing months earnings per share reached a value of $2.74. Last fiscal year, Abercrombie & Fitch paid $0.70 in the form of dividends to shareholders. Share Buyback Rate 3-Years: 2.1 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.57, the P/S ratio is 0.63 and the P/B ratio is finally 1.61. The dividend yield amounts to 2.15 percent and the beta ratio has a value of 1.75.
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| Long-Term Stock Price Chart Of Abercrombie & Fitch (ANF) |
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| Long-Term Dividend Payment History of Abercrombie & Fitch (ANF) |
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| Long-Term Dividend Yield History of Abercrombie & Fitch (ANF) |
Take a closer look at the full list of cheap dividend stocks from the Buyback Achievers index with low debt. The average P/E ratio amounts to 15.02
and forward P/E ratio is 12.47. The dividend yield has a value of 1.60 percent.
Price to book ratio is 2.25 and price to sales ratio 2.06. The operating margin
amounts to 27.94 percent and the beta ratio is 0.12. Stocks from the list have
an average debt to equity ratio of 0.12.
Here is the full table with
some fundamentals (TTM):
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| Share Buyback Dividend Stocks With Low Debt (Click to enlarge) |
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Related Stock Ticker Symbols:
GLW, GES, PROV,
ANF, GME, EWBC, MRVL, QCOR, KAI, AGII, FFG, RNR, DV, CNO, PTP, WIRE
Selected Articles:
*I have no positions in any stocks mentioned, and no plans to initiate any
positions within the next 72 hours. I receive no compensation to write about
any specific stock, sector or theme.