Dividends and share buybacks help increase value for people holding a stock, and there's a lot of money to be had as companies shovel record amounts of cash back to shareholders.
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...