15 Top Yielding Stocks From The Buyback Achievers Portfolio

Best yielding stocks from the Dividend Buyback Achievers Portfolio originally published at long-term-investments.blogspot.com. I always talk about good dividends that grow over time but receiving big dividends from high quality stocks is only the half truth.

A Dividend payment is only one way to distribute earnings to shareholders. Another very effective way to pay money indirect is to buy own shares back.

Today I started a little screen about stocks that have repurchased at least around 5 percent of its own outstanding shares within the recent twelve months.

You can find a complete list of the top yielding stocks from the Dividend Buyback Achievers Portfolio attached. Only fifteen companies from the list have a current yield of more than 3 percent.

13 Unleveraged Dividend Challengers With Yields Over 2% | Dividend Income Growth

Dividend Challengers with very low debt to equity ratios and great initial dividend yields originally published at long-term-investments.blogspot.com. 

If you read my blog for a longer time you should have noticed that dividend growth is one of the most important wealth drivers for long-term dividend investors.

I also talked about the difference between high dividend yields at a low growth and low yielding stocks with a high dividend growth.

The answer of this question is a between solution: Look at good initial yields with growing dividends over the longer period. I talk about mentionable yields and growth rates above the inflation level.

Today I would like to combine both, good growth with an acceptable initial dividend yield. In addition I love it to find stocks with low or no long-term debt. This increases the chance for further big dividend hikes or an accelerated growth.

Only a low leveraged company has more flexibility to grow sales and income much easier. Let’s take a look into the third dividend growth stock category - Dividend Challengers.

Thirteen stocks from the Dividend Challengers list (stocks with dividend growth between 5 to 10 consecutive years) fulfilled my above mentioned criteria. One stock has a high yield close to the double-digit yield ratio and five got a buy or better rating by brokerage firms. Most of the companies from the screening results are low capitalized; eight of them have a market capitalization under USD 2 billion.

20 Best Yielding Stocks From The Share Buyback Achievers Index

The highest yielding stocks from the Share Buyback Achievers index originally published at "long-term-investments.blogspot.com". I love dividends and dividend growth but most investors are fixed on these themes. Some companies know this and they try to catch investors by paying dividends and let them grow. The problem is that they have only a middle class business model and they burn shareholder value by following the dividend growth approach.

Better variants to give money back to shareholders are share buyback programs. The company buys own stocks and reduces the current amount of outstanding shares. As a result, earnings per share grow at a higher rate and the share price should follow because the P/E goes down and yields are up.
There exists an index that covers the best stocks with share buy backs of at least 5 percent or more for the trailing 12 months. The index is called Buyback Achievers Index. Over 200 companies are constituents but only half of them pay dividends.

Today, I like to introduce the 20 highest yielding stocks from the index. Below results are completely different stocks compared to my regular screens about Dividend Champs and other growth picks. Just take a look and get inspired.

15 Most Impressive Dividend Growth Stocks

Long-Term Dividend Income Stocks With Great Growth Figures by Dividend Yield - Stock, Capital, Investment. Here is a current overview of dividend stocks with long-term double digit earnings and sales growth. In addition, the companies created value due to a return on investment of more than 10 percent over the past five years. These are the criteria in detail:

Dividend Yield: Over 2 percent

5-Year Return On Investment: Over 10 percent

10-Year Sales Growth: More than 15 percent

10-Year Earnings per Share growth: Above 20 percent

The results are impressive. There are five high yields available and 7 have a buy or better recommendation outstanding. The only stock with a strong buy rating is Mobile Telesystems (MBT). The company has a current yield of 6.41 percent and has also the biggest sales growth in our screen. The biggest income growth was realized by American Science & Engineering (ASEI) with an earnings per share growth of 43 percent yearly. However, the most profitable companies are Strayer Education (STRA) and Southern Copper (SCCO).

Here are my favorite stocks:

(Subscribe my Blog via RSS Feed or E-Mail. Alternative, you can follow me on Facebook or Twitter)

Strayer Education (NASDAQ:STRA) has a market capitalization of $1.34 billion. The company employs 2,099 people, generates revenues of $636.73 million and has a net income of $131.26 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $233.08 million. Because of these figures, the EBITDA margin is 36.61 percent (operating margin 33.89 percent and the net profit margin finally 20.61 percent).


Financial Analysis:
The total debt representing 0.00 percent of the company’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 71.76 percent was realized. Twelve trailing months earnings per share reached a value of $9.25. Last fiscal year, the company paid $3.25 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 12.08, Price/Sales 2.23 and Price/Book ratio 8.95. Dividend Yield: 3.43 percent. The beta ratio is 0.72.

Long-Term Stock History Chart Of Strayer Education, Inc. (Click to enlarge)

Long-Term Dividends History of Strayer Education, Inc. (STRA) (Click to enlarge)

Long-Term Dividend Yield History of Strayer Education, Inc. (NASDAQ: STRA) (Click to enlarge)

Companhia de Bebidas das Americas (NYSE:ABV) has a market capitalization of $115.67 billion. The company employs 44,924 people, generates revenues of $14,337.10 million and has a net income of $4,329.09 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,497.78 million. Because of these figures, the EBITDA margin is 45.32 percent (operating margin 39.72 percent and the net profit margin finally 30.20 percent).


Financial Analysis:
The total debt representing 15.87 percent of the company’s assets and the total debt in relation to the equity amounts to 27.80 percent. Due to the financial situation, a return on equity of 32.61 percent was realized. Twelve trailing months earnings per share reached a value of $1.50. Last fiscal year, the company paid $0.88 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 24.81, Price/Sales 7.19 and Price/Book ratio 8.32. Dividend Yield: 4.01 percent. The beta ratio is 0.98.

Long-Term Stock History Chart Of Companhia de Bebidas d... (Click to enlarge)

Long-Term Dividends History of Companhia de Bebidas d... (ABV) (Click to enlarge)

Long-Term Dividend Yield History of Companhia de Bebidas d... (NYSE: ABV) (Click to enlarge)

Southern Copper Corp. (NYSE:SCCO) has a market capitalization of $30.28 billion. The company employs 11,126 people, generates revenues of $5,149.50 million and has a net income of $1,562.71 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,885.90 million. Because of these figures, the EBITDA margin is 56.04 percent (operating margin 50.57 percent and the net profit margin finally 30.35 percent).


Financial Analysis:
The total debt representing 33.96 percent of the company’s assets and the total debt in relation to the equity amounts to 70.95 percent. Due to the financial situation, a return on equity of 40.02 percent was realized. Twelve trailing months earnings per share reached a value of $2.70. Last fiscal year, the company paid $1.68 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 13.32, Price/Sales 5.89 and Price/Book ratio 7.89. Dividend Yield: 6.96 percent. The beta ratio is 1.63.

Long-Term Stock History Chart Of Southern Copper Corp. (Click to enlarge)

Long-Term Dividends History of Southern Copper Corp. (SCCO) (Click to enlarge)

Long-Term Dividend Yield History of Southern Copper Corp. (NYSE: SCCO) (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 10.91. The dividend yield has a value of 4.88 percent. Price to book ratio is 3.78 and price to sales ratio 4.88. The operating margin amounts to 28.81 percent.

Here is the full table with some fundamentals (TTM):

15 Most Impressive Dividend Growth Stocks (Click to enlarge)

Related stock ticker symbols:

SXL, VALE, SCCO, MBT, QCCO, ARLP, ABV, YZC, STRA, RES, CYD, BBL, ASEI, BHP, MANT

Selected Articles:

· 27 Strong Dividend Income Stocks

· 20 Technology Stocks With Best Yields And Earnings Growth

· 100 Best Growth Stocks – Part VII

· 8 Cheap Growth Stocks With High Margins And Dividend Yields

· My Favorite Dividend Stock Picks For 2012

* 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.