These low-tech stocks have good yields and strong stock buyback programs. These features can help provide good returns to investors by providing a buffer on the downside and acting as a catalyst on the upside. Many of these kinds of stocks are in cyclical industries like manufacturing, mining, farming and construction. The point is, these stocks all now reflect the huge possibility of a recession. These six low-tech stocks have good yields and stock buyback programs that should provide good returns to investors...
Cummins (CMI): This diesel and natural gas engine manufacturer is cheap at 1x sales and less than 10x 2023 forecast earnings, with a 3% dividend yield. It plans on paying out 50% of operating cash flow in dividends and buybacks. Avnet (AVT): This electronics distributor is forecast to show nominal growth but has a low 6.1x earnings multiple and a 2.5% dividend yield with plenty of free cash flow (FCF) to cover the dividend. In addition, the company started repurchasing its stock this year. Caterpillar (CAT): This heavy machinery maker has a 2.7% yield and is on track to buy back 3.27% of its market cap annually. Given that the stock is cheap at just 12.2x earnings, this makes it a good low-tech stock to buy now. Nucor (NUE): This steel mill and steel products maker has strong earnings and trades for just 9.1x earnings and a 1.9% yield. Moreover, the company is buying back shares at a run rate equal to 12% of its market cap. AGCO Corp (AGCO): This farm equipment maker has a regular dividend yield of 1% and has paid a variable dividend worth 4.47% of the stock price in the past two years. Earnings are projected to grow 10.1%, putting it on a low 7.65x forward P/E. The Toro Company (TTC): The lawn, turf and ice management machine maker is cheap at 16x forecast 2023 earnings and a 1.6% dividend yield. Moreover, buybacks represent 1.88% of its market cap, making it a valuable low-tech dividend stock.
Source: InvestorPlace
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