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3 Dow Jones Stocks With Shareholder Yields Over 10%

This blog is mostly dedicated to dividend growth stocks and yield is an important issue but it tells investors only half of the truth.

Beside dividend payments to shareholders, the company can also spend money for share buybacks. If we combine buybacks and dividends, we got a new yield, a shareholder yield, which is normally higher than the current dividend yield.

Below is a list of stocks from the Dow Jones which shows the current shareholder yields of the index. The results are better than the dividend yields due to positive share buybacks. Only three stocks have a double-digit shareholder yield.

Here are the top results with a 10+ percent shareholder yield...

Caterpillar -- Yield: 3.43%

Caterpillar (NYSE:CAT) employs 114,233 people, generates revenue of $55,184.00 million and has a net income of $3,703.00 million. The current market capitalization stands at $50.25 billion.

Caterpillar’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,932.00 million. The EBITDA margin is 16.19% (the operating margin is 9.65% and the net profit margin 6.71%).

Financials: The total debt represents 46.39% of Caterpillar assets and the total debt in relation to the equity amounts to 234.59%. Due to the financial situation, a return on equity of 19.68% was realized by Caterpillar.

Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, Caterpillar paid $2.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.93, the P/S ratio is 0.90 and the P/B ratio is finally 2.96. The dividend yield amounts to 3.43%.

Stock Charts:

Long-Term Stock Price Chart of Caterpillar (CAT)
Long-Term Stock Price Chart of Caterpillar (CAT)
Long-Term Dividend Payment History of Caterpillar (CAT)
Long-Term Dividend Payment History of Caterpillar (CAT)
Long-Term Dividend Yield History of Caterpillar (CAT)
Long-Term Dividend Yield History of Caterpillar (CAT)



Intl. Business Machines -- Yield: 2.76%

Intl. Business Machines (NYSE:IBM) employs 379,592 people, generates revenue of $92,793.00 million and has a net income of $15,752.00 million. The current market capitalization stands at $158.95 billion.

Intl. Business Machines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $25,350.00 million. The EBITDA margin is 27.32% (the operating margin is 21.54% and the net profit margin 16.98%).

Financials: The total debt represents 34.72% of Intl. Business Machines assets and the total debt in relation to the equity amounts to 343.82%. Due to the financial situation, a return on equity of 90.89% was realized by Intl. Business Machines.

Twelve trailing months earnings per share reached a value of $15.74. Last fiscal year, Intl. Business Machines paid $4.25 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.13, the P/S ratio is 1.70 and the P/B ratio is finally 13.31. The dividend yield amounts to 2.76%.

Stock Charts:

Long-Term Stock Price Chart of Intl. Business Machines (IBM)
Long-Term Stock Price Chart of Intl. Business Machines (IBM)
Long-Term Dividend Payment History of Intl. Business Machines (IBM)
Long-Term Dividend Payment History of Intl. Business Machines (IBM)
Long-Term Dividend Yield History of Intl. Business Machines (IBM)
Long-Term Dividend Yield History of Intl. Business Machines (IBM)

Travelers Companies -- Yield: 2.06%

Travelers Companies (NYSE:TRV) employs 30,200 people, generates revenue of $27,162.00 million and has a net income of $3,692.00 million. The current market capitalization stands at $34.49 billion.

Travelers Companies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,204.00 million. The EBITDA margin is 37.57% (the operating margin is 20.09% and the net profit margin 13.59%).

Financials: The total debt represents 6.16% of Travelers Companies assets and the total debt in relation to the equity amounts to 25.56%. Due to the financial situation, a return on equity of 14.77% was realized by Travelers Companies.

Twelve trailing months earnings per share reached a value of $10.71. Last fiscal year, Travelers Companies paid $2.15 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.98, the P/S ratio is 1.26 and the P/B ratio is finally 1.39. The dividend yield amounts to 2.06%.

Stock Charts:

Long-Term Stock Price Chart of Travelers Companies (TRV)
Long-Term Stock Price Chart of Travelers Companies (TRV)
Long-Term Dividend Payment History of Travelers Companies (TRV)
Long-Term Dividend Payment History of Travelers Companies (TRV)
Long-Term Dividend Yield History of Travelers Companies (TRV)
Long-Term Dividend Yield History of Travelers Companies (TRV)
Source: BusinessInsider, MEBANE FABER

Check out the Dogs of the Dow here.

Which stocks do you like?