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7 Top Dividend Growth And Share Buyback Stocks Of The Week

As you might have noticed, my blog covers dividend growth stocks and companies with fresh stock buyback announcements.

It's not a real investment strategy but both are activities for investors.

You can find each week a list of all dividend growth stocks and share buyback companies on this site. It's the only source who compiles this on the internet.

Within the past week, only eight companies raised their dividend payments and additional nine stocks announced a stock buyback program.

Both are shareholder-friendly activities which could be helpful for normal investors like me and you.
Back to dividend growth: No large-cap stock was in the list of the latest dividend grower. The biggest fish in the pool was the insurer American Financial Group who raised dividends by 13.64 percent.

7 of my favorite dividend growth stocks and share buyback announcements of the past week are...

Warren Buffett Buys An Auto Dealer - Here Are 5 Top Dividend Paying Alternatives

Yesterday, news jumped into the market: The oracle of Omaha, Warren Buffett the mastermind behind the investment holding Berkshire Hathaway, bought an auto dealer. What - Auto and Dealer?

Yes, Buffett acquired an auto dealer. He still owns shares of car manufacturer General Motors and adds a fully business from the distribution site. The company named Van Tuyl Group and generated sales of just under USD 8 billion.

Van Tuyl Group says it is the biggest privately owned auto dealership group in the U.S. It has 78 independently operated dealerships and more than 100 franchises in 10 states. The company will be renamed Berkshire Hathaway Automotive and be based in Dallas.


The deal comes amid ongoing consolidation in the industry. Publicly traded giants, including Florida-based AutoNation and Oregon-based Lithia Motors have been snapping up smaller retail chains, often run by families who have been selling cars for generations.

It also could be possible that Buffett buys the Van Tuyl Group in order to create a new channel to sell auto insurance policies.
I've also had some of my eyes on auto parts and car dealers in the past. The main problem was for me that they have no good diversification abroad. Most companies generate revenues in the United States but they have shown strong growth.

Below are five dividend paying alternatives from the auto dealership industry. Most of the industry members pay no dividends but for nearly all, double-digit earnings growth is predicted. If you like to follow my stories, please subscribe my blog news.

5 dividend paying auto dealers are..

10 Stocks With The Highest Share Buyback Volume In 2014

I'm a big fan of dividend growth but I also like stocks that buy back own shares. By reducing its own outstanding shares, earnings per share could get a boot.

It’s the highest shareholder friendly activity that a company can make but also very sensitive because buybacks will shut down eelier than dividend growth.

Many companies from the S&P 500 pay good dividends and buy on a regular basis shares in the same amount. If you have a stable business model, you can easily do both without hurting your operational business.

Recently, the buyback numbers from the S&P were released and some financial research firms jumped on that data to create researches. I have read them and I want to share the best buyback companies with you here today.

Most of the stocks with the highest buyback volume in Q2 outperformed the market. These are the companies with the strongest buyback programs:

3 Fairly Priced High-Margin Stocks Warren Buffett Would Like

Everybody wants to make money, big money over the long-haul. You put money into a stock and get twice of this amount back in 10 years. That's great and I have often invested into stocks that doubled in a decade easily.

Today I like to come back to return. It's very important to see that the company makes good profits on its annual sales. The higher the margin, net or operational, the better is the market dominance of the firm.

I like companies with high margins, Google and Apple have unbelievable high margins. You might wonder but they have no direct competition and can charge customers each price they want, there is no alternative and if you need those products or you think you must have them, you must pay the bill.


Warren Buffett is also a great investor who invested into stocks that produce high returns on invested capital. It's the guarantee that the firm makes internal revenues which could be used to pay investors.

I ran a screen that searched for the accompanying criteria: 


Average returns on invested capital > 12% over the last 5 years

- Current return on invested capital > its 5-year average 


I sifted further for organizations with a long history of solid sales and profit improvements combined with robust, and enhancing, net revenues that are not profoundly leveraged by debt. I added the accompanying extra criteria: 
- Average sales growth > 10% over the last 5 years
- Average EPS growth > 10% over the last 5 years
- Average operating profit margin > 10% over the last 5 years
- Current operating profit margin > its 5-year average
3 companies jumped on top of my screen. Very informative...

Yields Of The Dividend Aristocrats | 12 Cheapest Stock Of The Index

Today I've attached a list of the yields from the Dividend Aristocrats for you. You can also find the payout ratios in this table. It's very informative in my view and I use this overview too in order to get a feeling about the pricing of the market.

Dividend Aristocrats are stocks that have increased dividend payments over a period of 25 consecutive years without a break. That's a top value and around 100+companies could achieve this goal.

Standard & Poor's increases the restrictions and cut the list to 42 members. Well not all stocks are good from the list but you can find there some value player. Just take a look!
Only 12 companies yield over 3 percent. Not bad for a low interest environment. The bond market offers 1.56 percent and has also default risks.

The top yielding stocks also slow grower full of debt. Which stock do you like or own from the list? Let me know your thoughts and write a comment. Thank you.



These are my main thoughts to the Dividend Aristocrats list:

- When we look at the highest yielding stocks with yields over 3 percent, we see that only 3 companies have a low forward P/E.

- Stocks with a lower yield are much cheaper. 9 companies with yields less than 2 percent have a forward P/E under 15.

- Low yielding stocks pay out less of it's annual earnings and might be reinvest more money into growth.

Also read this: 25 Of The Most Attractive Dividend Stocks

These are the 12 cheapest Dividend Aristocrats:


Company
Ticker
Mcap
P/E
P/B
P/S
Yield
AT&T, Inc.
T
182.96B
10.38
1.99
1.40
5.22%
Consolidated Edison, Inc.
16.50B
13.04
1.33
1.26
4.47%
Chevron Corporation
230.66B
11.59
1.49
1.06
3.52%
Exxon Mobil Corporation
406.98B
12.16
2.26
0.96
2.89%
Bemis Company, Inc.
3.80B
17.37
2.25
0.77
2.84%
AFLAC Inc.
26.50B
9.24
1.51
1.14
2.53%
Wal-Mart Stores Inc.
246.49B
16.00
3.18
0.51
2.51%
Stanley Black & Decker, Inc.
14.10B
23.14
2.00
1.26
2.31%
The Chubb Corporation
21.98B
11.19
1.36
1.58
2.19%
Medtronic, Inc.
62.04B
21.40
3.27
3.61
1.93%
Archer-Daniels-Midland Company
32.84B
20.43
1.65
0.37
1.89%
Franklin Resources Inc.
34.39B
15.41
3.04
4.13
0.87%


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