I like high-yield dividend stocks that also have the ability to buy back their shares. These are called total yield dividend stocks. They offer investors attractive total returns. The amount of share buybacks (also referred to as stock buybacks) during the year divided by the market value equals the buyback yield. By adding the dividend yield and the buyback yield, one can determine the total yield of a stock. I decided to look for companies with dividends and buybacks which, when added together, represent at least 8% of the market value of the stock. This means the stock has at least an 8% total yield. Some of these stocks have higher dividend yields and some have higher buyback yields. But when added together, that sum is greater than 8%...
AbbVie (NYSE:ABBV) is a drug company. Its purchase of Allergan, expected to close shortly, will boost earnings and dividends and push AbbVie’s stock higher. AT&T (NYSE:T) has stated very publically that it plans to pay out 8.5% annually over the next three years ending 2022 in both dividends and buybacks. Delta Air Lines (NYSE:DAL) stock offers great value to investors. DAL stock has a great 2.73% dividend yield and a buyback yield of 5.3%. This represents an 8.16% total yield for investors. Lam Research (NASDAQ:LRCX) makes semiconductor processing and fabrication equipment. It turns out that LRCX stock benefits from the company’s very strong buyback program. Medifast (NYSE:MED), the weight loss and nutritional products company, is both very profitable and committed to returning capital. MED stock is cheap, trading with a 4.41% dividend yield and a 3.99% buyback yield. This gives it an 8.40% total yield for shareholders.
Source: InvestorPlace
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- 5 Dividend Stocks Beating the S&P With Positive Returns In Excess of 50% YTD
- Income Annuities vs. Dividend Stocks
- 5 Tech Stocks With A History of Growing Their Dividends
- How To Manage Your Dividend Portfolio In A Downturn
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