Goldman Sachs Lists the Best Stocks for Dividends and Buybacks

by Burke Speaker | October 11, 2013 9:19 am

With the uncertainty of the economy these days, investors are looking to companies that provide returns on their investments in the form of dividends and buyback strategies.

Goldman Sachs (GS[1]) has released a report that shows the best stocks for dividends and buybacks. Goldman notes in the report that S&P 500 companies that have strong buyback programs have in fact outperformed the market in the past 20 years

“S&P 500 companies are buying back more than 3% of market cap, 2x the pace from the 1990s, and dividends are up 50% since 2010,”  Goldman economist Stuart Kaiser notes in the report. “80% of S&P 500 is buying back stock. We expect 10% buyback and dividend growth in 2014.”

Here are the Top 5 of Goldman Sachs’ 23 best stocks for dividends and buybacks (via Business Insider[2]).

 

5. Tenet Healthcare (THC[3])

Buyback yield: 18.1%

Dividend yield: 0.1%

Total yield: 18.2%

 

4. Pfizer (PFE[4])

Buyback yield: 14.4%

Dividend yield: 3.9%

Total yield: 18.2%

 

3. Dun & Bradstreet (DNB[5])

Buyback yield: 17.2%

Dividend yield: 1.9%

Total yield: 19.2%

 

2. Pentair Ltd (PNR[6])

Buyback yield: 22.1%

Dividend yield: 4.3%

Total yield: 26.4%

 

1. AIG (AIG[7])

Buyback yield: 39.0%

Dividend yield: 0.0%

Total yield: 39.0%
Click here to see the full list of 23.[8]

Source URL: https://investorplace.com/2013/10/goldman-sachs-lists-best-stocks-dividends-buybacks/

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