This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Book Double the Gains With These 5 Shareholder Yield Champs

BALTIMORE (Stockpickr) -- It's so simple it's almost hard to believe: Companies that return cash to their shareholders tend to outperform the rest of the market. And not by just a little, either.

>>3 Huge Stocks on Traders' Radars

I'm talking about nearly double the average 10% annualized gains that you'd get by buying and holding the S&P 500 or the Dow Jones Industrial Average over the long-run. To figure out which names you should own, it boils down to three simple metrics that measure the cash a company is giving back to its investors each year.

What is the secret sauce I'm talking about? It's shareholder yield.

In a nutshell, shareholder yield is made up of anything that directly returns cash or equity to your portfolio. Yes, that includes obvious moves such as dividends -- but it also includes share buybacks and paying down debt.

Any of those three corporate actions can unlock significant value for shareholders, and the data back it up. According to research by James O'Shaughnessy, over a 40-year period, large-cap stocks with the highest shareholder yield delivered average gains of 18.05%. That's almost double the returns that investing in the vanilla big index would have earned you.

>>5 Dividend Stocks That Want to Pay You More in 2014

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.

With that in mind, here's a look at five names that have provided superior shareholder yield in the last year.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
BBBY $45.01 -0.79%
HPQ $11.48 0.26%
NTAP $23.10 1.20%
TGT $78.29 0.20%
UPS $101.26 -0.86%


Chart of I:DJI
DOW 17,651.43 -9.28 -0.05%
S&P 500 2,041.82 -8.81 -0.43%
NASDAQ 4,690.20 -26.8940 -0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs