Top Net Payout Yield Stocks

Most investors continue to focus on high dividend yielding stocks paying very little attention to stock buybacks. Unless you're a retiree living completely on fixed income, it's a mistake to not focus on the complete picture of returns of capital to shareholders. The combination of stock buybacks and dividends or Net Payout Yields (NPY) has offered higher returns in the past. Buybacks can be a more efficient return of capital to shareholders as it reduces the tax burden of investors. Management also has more flexibility to increase the payout ratio when a company's stock fluctuates in price. With dividends, the investment culture requires a steady-to-rising dividend stream - leaving management teams stuck with low payout ratios to allow for unforeseen events that could lower corporate profits or liquidity. Below is a list of stocks with the top NPY with market caps above $10B as of the 10th. As can be... Read more