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.
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.
