Kohl's 12.7% Total Yield Is Very Attractive

Kohl's Total Yield Is Outstanding Value - 12.7%
Kohl's Corp (KSS) has a total yield of 12.7% which is covered by its free cash flow ("FCF"). The total yield is the sum of the dividend yield and the buyback yield. My estimate is that KSS is worth at least 47% more, at $65.70.
For example, KSS pays $2.68 per share in dividends per share. At $44.75 today (Aug. 27) the stock yields 6.0% ($2.68 / $44.75). KSS's market value is $7.25 billion and its planned buybacks this year, according to management, will be at least $485 million. So that gives KSS a buyback yield of 6.7% ($485 m / $7,250 m). Together that means shareholders receive a total return of capital of 12.7% of KSS's market value. That means its total yield is 12.7%.
As readers of my articles know, and also subscribers to my Total Yield Value Guide (see below), I focus on stocks with high total yields. I look for those companies that can afford this total yield. They are not borrowing money or issuing equity to pay for the high total yield to shareholders. I will show that Kohl's estimated free cash flow is greater than its spending on dividends and buybacks this year.
KSS Has Been Keenly Focused On Buybacks
Over the past 10 years, KSS has reduced its share count by 45% through share buybacks, including this year's estimate:

Source: Hake compilation of KSS data
On August 20, 2019, management made it extremely clear that they would be buying back close to $500 million worth of shares this fiscal... Read more

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