We recognize activist investors often agitate for firms to return excess cash to shareholders via buybacks. However, while repurchases may lift share prices in the near term, they are a questionable use of cash at the current time when the median S&P 500 multiple is so high. In our view, acquisitions – particularly in the form of stock deals – represent a more compelling strategic use of cash than buybacks given the current stretched valuation of US equities.
I've compiled a list of the top 19 stocks, all with a total cash return yield of more than 10%. Below include how much of the return is from dividends or buybacks. You'll also find a comment about cash returns from company executives on the during their latest quarterly earnings call.
Check out the 19 stocks here...
KLA-Tencor -- Yield: 4.13%
KLA-Tencor (NASDAQ:KLAC) employs 5,880 people, generates revenue of $2,814.05 million and has a net income of $366.16 million. The current market capitalization stands at $7.94 billion.KLA-Tencor’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $774.98 million. The EBITDA margin is 27.54% (the operating margin is 18.82% and the net profit margin 13.01%).
Financials: The total debt represents 66.11% of KLA-Tencor assets and the total debt in relation to the equity amounts to 757.03%. Due to the financial situation, a return on equity of 17.90% was realized by KLA-Tencor.
Twelve trailing months earnings per share reached a value of $2.21. Last fiscal year, KLA-Tencor paid $2.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.29, the P/S ratio is 2.82 and the P/B ratio is finally 18.88. The dividend yield amounts to 4.13%.
Stock Charts:
 |
| Long-Term Stock Price Chart of KLA-Tencor (KLAC) |
 |
| Long-Term Dividend Payment History of KLA-Tencor (KLAC) |
 |
| Long-Term Dividend Yield History of KLA-Tencor (KLAC) |
LyondellBasell Industries -- Yield: 3.64%
LyondellBasell Industries (NYSE:LYB) employs 13,100 people, generates revenue of $45,608.00 million and has a net income of $4,172.00 million. The current market capitalization stands at $39.92 billion.LyondellBasell Industries’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,749.00 million. The EBITDA margin is 14.80% (the operating margin is 12.46% and the net profit margin 9.15%).
Financials: The total debt represents 29.27% of LyondellBasell Industries assets and the total debt in relation to the equity amounts to 85.48%. Due to the financial situation, a return on equity of 40.07% was realized by LyondellBasell Industries.
Twelve trailing months earnings per share reached a value of $9.28. Last fiscal year, LyondellBasell Industries 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 9.35, the P/S ratio is 0.88 and the P/B ratio is finally 5.02. The dividend yield amounts to 3.64%.
Stock Charts:
 |
| Long-Term Stock Price Chart of LyondellBasell Industries (LYB) |
 |
| Long-Term Dividend Payment History of LyondellBasell Industries (LYB) |
 |
| Long-Term Dividend Yield History of LyondellBasell Industries (LYB) |
Darden Restaurants -- Yield: 3.17%
Darden Restaurants (NYSE:DRI) employs 148,892 people, generates revenue of $6,764.00 million and has a net income of $196.40 million. The current market capitalization stands at $8.86 billion.Darden Restaurants’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $789.00 million. The EBITDA margin is 11.66% (the operating margin is 5.44% and the net profit margin 2.90%).
Financials: The total debt represents 24.48% of Darden Restaurants assets and the total debt in relation to the equity amounts to 62.88%. Due to the financial situation, a return on equity of 8.75% was realized by Darden Restaurants.
Twelve trailing months earnings per share reached a value of $1.54. Last fiscal year, Darden Restaurants paid $2.20 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 45.48, the P/S ratio is 1.31 and the P/B ratio is finally 3.77. The dividend yield amounts to 3.17%.
Stock Charts:
 |
| Long-Term Stock Price Chart of Darden Restaurants (DRI) |
 |
| Long-Term Dividend Payment History of Darden Restaurants (DRI) |
 |
| Long-Term Dividend Yield History of Darden Restaurants (DRI) |
 |
| 19 Dividend Stocks With A Cash Return Yield Over 10% (click to enlarge) |
