This blog is mostly dedicated to dividend growth stocks and yield is an important issue but it tells investors only half of the truth.
Beside dividend payments to shareholders, the company can also spend money for share buybacks. If we combine buybacks and dividends, we got a new yield, a shareholder yield, which is normally higher than the current dividend yield.
Below is a list of stocks from the Dow Jones which shows the current shareholder yields of the index. The results are better than the dividend yields due to positive share buybacks. Only three stocks have a double-digit shareholder yield.
Here are the top results with a 10+ percent shareholder yield...
Caterpillar -- Yield: 3.43%
Caterpillar (NYSE:CAT) employs 114,233 people, generates revenue of $55,184.00 million and has a net income of $3,703.00 million. The current market capitalization stands at $50.25 billion.
Caterpillar's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,932.00 million. The EBITDA margin is 16.19% (the operating margin is 9.65% and the net profit margin 6.71%).
Financials: The total debt represents 46.39% of Caterpillar assets and the total debt in relation to the equity amounts to 234.59%. Due to the financial situation, a return on equity of 19.68% was realized by Caterpillar.
Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, Caterpillar paid $2.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.93, the P/S ratio is 0.90 and the P/B ratio is finally 2.96. The dividend yield amounts to 3.43%. - Check out the other stocks here: 3 Dow Jones Stocks With Shareholder Yields Over 10%....