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.Read More »
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.Read More »
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.
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