I'm a big fan of dividend growth but I also like stocks that buy back own shares. By reducing its own outstanding shares, earnings per share could get a boot.
It's the highest shareholder friendly activity that a company can make but also very sensitive because buybacks will shut down ealier than dividend growth.
Many companies from the S&P 500 pay good dividends and buy on a regular basis shares in the same amount. If you have a stable business model, you can easily do both without hurting your operational business.
Recently, the buyback numbers from the S&P were released and some financial research firms jumped on that data to create researches. I have read them and I want to share the best buyback companies with you here today.
Most of the stocks with the highest buyback volume in Q2 outperformed the market. These are the companies with the strongest buyback programs:
10 Top Buyback stocks for Q2/2014...
These are the key-notes from the publishing:
- Quarterly Buybacks Declined Year-over-Year
- Q1 Buyback Leaders Take a Breather
- Consumer Discretionary Sector Increases Buybacks 35%
- Buybacks Relative to Free Cash Flow Hit 2008 Levels
You also may like: 6 Dividend Growth And Share Buyback Stocks Of The Week
These stocks have the strongest buybacks year-to-date:
#1 Pfizer (NYSE:PFE) has a market capitalization of $188.77 billion. The company employs 77,700 people, generates revenue of $51,584.00 million and has a net income of $11,410.00 million. Pfizer's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $23,623.00 million. The EBITDA margin is 45.80 percent (the operating margin is 31.32 percent and the net profit margin 22.12 percent).
Financial Analysis: The total debt represents 21.20 percent of Pfizer's assets and the total debt in relation to the equity amounts to 47.82 percent. Due to the financial situation, a return on equity of 14.45 percent was realized by Pfizer. Twelve trailing months earnings per share reached a value of $1.59. Last fiscal year, Pfizer paid $0.96 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.65, the P/S ratio is 3.63 and the P/B ratio is finally 2.48. The dividend yield amounts to 3.52 percent and the beta ratio has a value of 0.69. - See more stocks from #2 -#10 here: 10 Stocks With The Highest Share Buyback Volume In 2014...
