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.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 19.00 and forward P/E ratio is 15.02. The dividend yield has a value of 4.08 percent. Price to book ratio is 2.77 and price to sales ratio 1.81. The operating margin amounts to 14.98 percent and the beta ratio is 1.34. Stocks from the list have an average debt to equity ratio of 1.12.
Related stock ticker symbols:
MCGC, TAL, SEM, VCI, RHP, COP, CMTL, CY, LXK, CVC, CA, ASEI, AM, WFD, NYX, HRB, WYNN, GME, KSS, SWY