My 4 High Dividend-Paying Favorites from the Share Buyback Achievers Index

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May 13, 2013
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 letting 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 its 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 introduce the 20 highest yielding stocks from the index. The results below are completely different stocks compared to my regular screens about Dividend Champs and other growth picks. Just take a look and get inspired.

Here are my favorite stocks:

ConocoPhillips (COP) has a market capitalization of $76.09 billion. The company employs 17,100 people, generates revenue of $62.004 billion and has a net income of $7.481 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.309 billion. The EBITDA margin is 35.98 percent (the operating margin is 24.87 percent and the net profit margin 12.07 percent).

Financial Analysis: The total debt represents 18.55 percent of the company’s assets and the total debt in relation to the equity amounts to 45.27 percent. Due to the financial situation, a return on equity of 13.09 percent was realized. Twelve trailing months earnings per share reached a value of $5.86. Last fiscal year, the company paid $2.64 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.61, the P/S ratio is 1.23 and the P/B ratio is finally 1.58. The dividend yield amounts to 4.24 percent and the beta ratio has a value of 1.10.

CA (CA) has a market capitalization of $12.41 billion. The company employs 13,600 people, generates revenue of $4.814 billion and has a net income of $938.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.857 billion. The EBITDA margin is 38.57 percent (the operating margin is 28.85 percent and the net profit margin 19.48 percent).

Financial Analysis: The total debt represents 12.00 percent of the company’s assets and the total debt in relation to the equity amounts to 26.68 percent. Due to the financial situation, a return on equity of 16.83 percent was realized. Twelve trailing months earnings per share reached a value of $1.98. Last fiscal year, the company paid $0.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.74, the P/S ratio is 2.56 and the P/B ratio is finally 2.35. The dividend yield amounts to 3.67 percent and the beta ratio has a value of 1.07.

American Science & Engineering (ASEI) has a market capitalization of $537.28 million. The company employs 415 people, generates revenue of $186.68 million and has a net income of $17.45 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31.38 million. The EBITDA margin is 16.81 percent (the operating margin is 14.07 percent and the net profit margin 9.35 percent).

Financial Analysis: The total debt represents 1.04 percent of the company’s assets and the total debt in relation to the equity amounts to 1.43 percent. Due to the financial situation, a return on equity of 7.54 percent was realized. Twelve trailing months earnings per share reached a value of $2.06. Last fiscal year, the company paid $not calculable in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 29.18, the P/S ratio is 2.62 and the P/B ratio is finally 2.63. The dividend yield amounts to 3.33 percent and the beta ratio has a value of 0.51.

American Greeting (AM) has a market capitalization of $581.82 million. The company employs 8,200 people, generates revenue of $1.695 billion and has a net income of $57.20 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $216.64 million. The EBITDA margin is 12.78 percent (the operating margin is 8.82 percent and the net profit margin 3.37 percent).

Financial Analysis: The total debt represents 14.53 percent of the company’s assets and the total debt in relation to the equity amounts to 30.95 percent. Due to the financial situation, a return on equity of 7.67 percent was realized. Twelve trailing months earnings per share reached a value of $-0.21. Last fiscal year, the company paid $0.60 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 0.34 and the P/B ratio is finally 0.93. The dividend yield amounts to 3.26 percent and the beta ratio has a value of 1.73.

Take a closer look at the full list of the best yielding Buyback Achievers. 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

Selected Articles:

· Best Dividend Paying Stock List As Of May 2013

· 9 High-Yield Stocks With Strong Buy Rating

· 20 Stocks With Over 4% Dividend Yield And Highest Earnings Growth

· 10 Highest Yielding Dividend Contenders | High-Yield Growth Investing

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The highest yielding stocks from the Share Buyback Achievers index originally published at long-term-investments.blogspot.com.