BALTIMORE (Stockpickr) -- Dividends are great, don't get me wrong. But there's a different metric that investors should be focusing on this year: I'm talking about "shareholder yield." There's a shareholder yield smorgasbord happening right under investors' noses in 2013, and you won't want to miss out.
Shareholder yield focuses on measuring all the different ways that a company can return cash to its shareholders. Yes, that includes dividends -- but it also includes share buybacks and paying down debt.
In a nutshell, shareholder yield is made up of moves that directly return cash or equity to your portfolio.Any of those three corporate actions can unlock significant value for shareholders, and the data backs it up. According to research by Cambria Investment Management CIO Mebane Faber, shareholder yield historically generates bigger returns than dividends alone. Much bigger returns. >>5 Stocks Ready for Breakouts The names that offer the heftiest yield aren't always obvious. While Microsoft (MSFT) made big headlines when it announced its $40 billion buyback and dividend plan yesterday, the tech giant ranks at #74 on our list of stocks with the highest shareholder yields. Today, we're focusing higher up on the list. With low interest rates and record levels of cash sitting on corporate balance sheets, management teams are looking for the most effective ways to return value to shareholders. It's not one size fits all, either - the best mix varies from company to company. But by looking at the trifecta of dividends, buybacks, and debt extinguishment, you can be sure that you won't miss out on any of the proceeds. >>5 Stocks With Big Insider Buying Here's a look at five names that have provided superior shareholder yield in the last year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV