3 Stocks to Buy for Long-Term Dividends and Buybacks

Income investors may want to consider the top stocks for dividends and buybacks. Both dividends and buybacks are ways that companies return cash to shareholders. The latter offers a bit more flexibility. Whereas companies have to cut their dividend if times are tight, buyback programs offer a way to return excess cash to shareholders on a one-off basis. Buying back shares reduces the number on the market, often leading to a bump in the share price as a result. It means shareholders automatically own a larger chunk of the company.

Stocks for Long-Term Dividends and Buybacks: The pharmaceutical sector is a good place to find some of the top stocks for dividends and buybacks. Thanks to its early vaccine candidate, pharmaceutical giant Pfizer (PFE) was a huge winner during the pandemic. Another sector to find stocks for long-term dividends and any buybacks is communications. Verizon (VZ) is no exception, with a dividend yield of over 7%. With a yield of less than 1%, Apple (AAPL) doesn’t often make the list of top dividend and buyback stocks. However, the latter part of that phrase makes the tech giant a candidate.

Source: InvestorPlace

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