- Published: 13 September 2013
- Written by Tom Roberts
Dividend paying stocks with low debt ratios and big share repurchases originally published at long-term-investments.blogspot.com. I love dividend growth stocks and dividend paying companies in general but it's also important that the corporate buys its own shares back.
The process of share repurchases is a special way to give shareholder's money back in a very tax-optimized way.
A low yielding stock with a 2 percent yield can lift the total yield via stock repurchases to 4 percent or so. For sure, share buybacks are no cash yields on your trading account; it's an indirect way to reduce the current shares and lift the potential share price.
There is an index outside that covers some of the best stocks with share repurchases of at least 5 percent within the past 12 months.
I would like to screen the Buyback Achievers index by the best yielding stocks with a low forward P/E as well as a very low debt to equity ratio. Low debt is a good indicator for potential growth or additional share buybacks.
These are my criteria in detail:
- Positive Dividend Yield
- Forward P/E under 15
- Long-Term Debt-To-Equity below 0.2
- Member of the Buyback Achievers Index
In total, sixteen stocks fulfilled the above mentioned restrictions of which ten have a current buy or better rating.
Here is the full table with some fundamentals:
Sixteen Reasonably Priced Dividend Stocks With Minimum Debt To Supercharge Share Repurchases...
Take a closer look at the full list. The average P/E ratio amounts to 15.02 and forward P/E ratio is 12.47. The dividend yield has a value of 1.60 percent. Price to book ratio is 2.25 and price to sales ratio 2.06. The operating margin amounts to 27.94 percent and the beta ratio is 0.12. Stocks from the list have an average debt to equity ratio of 0.12.
Related Stock Ticker Symbols:
GLW, GES, PROV, ANF, GME, EWBC, MRVL, QCOR, KAI, AGII, FFG, RNR, DV, CNO, PTP, WIRE
Selected Articles:
· 11 Amazing Dividend Growth Stocks With Little Debt
· 8 Predictable Dividend Stocks At Historical Book-Value Lows
· 18 Undervalued Stocks With Good Dividends And A Predictable Business
