Yield Leaders Rankings for November 3, 2017
Yield Leaders is designed for investors who are looking for a combination of dividend income and capital appreciation. Published every Friday, our weekly rankings are derived from a proprietary screen that heavily weights a metric called Shareholder Yield. While not very well-known, this metric allows investors to screen for companies that not only offer attractive dividend payments, but also offer the potential for capital appreciation that is inherent in large, active buyback programs.
For those who aren't familiar with it, Shareholder Yield is calculated as the sum of the annualized dividend yield plus the percentage of shares outstanding that the company has bought back over the past 12 months. For example, if Company XYZ has an annual dividend yield of 3%, and bought back 4% of its shares outstanding over the past 12 months, this equates to a Shareholder Yield of 7% (3% + 4% = 7%). Essentially, this ratio allows investors to quantify and screen for something that has always been very subjective: managements that are "shareholder-friendly." As such, screening for Shareholder Yield provides a much more targeted list of companies that are aggressively returning cash to their shareholders than you would get by looking at dividend yield alone.
In addition to the yield aspect, the "leaders" part of the title refers to the second component of the system: we require that stocks on our rankings show above-average 6-month Relative Strength, which ensures that our list is populated with high-yielding stocks that are also undergoing a healthy level of accumulation. There are no growth, profitability, or valuation requirements.
To sum up, the companies on our list will feature management teams that are decidedly shareholder-friendly, as evidenced by attractive dividend payouts and/or active share buyback programs. While the system doesn't have any valuation criteria, readers will find that these companies will often feature reasonable valuations as well.
All Yield Leaders content is published under the custom ticker "YIELD", which makes it simple to search for commentary and set up alerts.
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Questions or comments? Please send your thoughts directly to Robert Reid at rreid@briefing.com.
- Additions: FE, GNTX, HLS, SYY, USB, WFC
- Deletions: ANF, ETR, MSFT, RL, UPS, WDR
To address feedback regarding the YIELD list's rate of turnover: much of the week-to-week turnover in the Yield Leaders list can be attributed to two factors: 1) the earnings season-related refresh of dividend and share repurchase data, and 2) stocks whose RS ranks are oscillating just above or below the "Relative Strength > 50" requirement.
The following table contains a list of stocks that we believe should be particularly attractive to yield investors who are also looking for capital appreciation. Yield Leader components are derived from a quantitative screen that relies on Shareholder Yield, 6-month Relative Strength, and various other secondary criteria. The rankings are based on Shareholder Yield Rank, in descending order. There are no growth, profitability, or valuation criteria applied to this list.
As with any quantitative screen, we encourage readers to further investigate any metric that appears to be unusually high (for example, a Shareholder Yield of 20+%), since it could be inflated by a large one-time event that can't reasonably be extrapolated into the future.
*** If you would like to copy and paste the Yield Leaders components into your chart watchlist or spreadsheet, click here to pull up an unformatted ticker list.
Yield Leaders: November 3, 2017 |
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Mkt Cap |
RS |
Sh. Yield |
Div |
Buyback |
Shareholder |
Rank |
Name |
Ticker |
Price |
Sector |
(mln) |
Rank |
Rank |
Yield |
Yield |
Yield |
1 |
Kohl's |
KSS |
$42.00 |
Department Stores |
$7,121 |
52 |
99 |
5.2% |
7.5% |
12.7% |
2 |
Target |
TGT |
$59.79 |
Discount Stores |
$32,659 |
60 |
97 |
4.1% |
5.4% |
9.6% |
3 |
Boeing |
BA |
$260.73 |
Aerospace & Defense |
$156,417 |
84 |
96 |
2.2% |
7.1% |
9.3% |
4 |
Sysco |
SYY |
$56.54 |
Food Distributors |
$29,191 |
61 |
95 |
2.4% |
6.4% |
8.8% |
5 |
Valero Energy |
VLO |
$81.33 |
Oil Refining/Marketing |
$36,035 |
86 |
94 |
3.4% |
4.8% |
8.3% |
6 |
Guess? |
GES |
$16.64 |
Apparel/Footwear |
$1,396 |
90 |
93 |
5.4% |
2.3% |
7.6% |
7 |
Travelers Cos |
TRV |
$133.85 |
Insurance |
$36,864 |
61 |
93 |
2.1% |
5.4% |
7.6% |
8 |
American Eagle Outfitters |
AEO |
$13.07 |
Apparel/Footwear Retail |
$2,353 |
58 |
92 |
3.8% |
3.8% |
7.5% |
9 |
W.W. Grainger |
GWW |
$200.58 |
Wholesale Distributors |
$11,341 |
81 |
92 |
2.6% |
5.0% |
7.5% |
10 |
BB&T |
BBT |
$49.11 |
Major Banks |
$39,123 |
66 |
92 |
2.7% |
4.5% |
7.2% |
11 |
McDonald's |
MCD |
$168.24 |
Restaurants |
$136,161 |
65 |
91 |
2.4% |
4.7% |
7.1% |
12 |
Home Depot |
HD |
$164.18 |
Home Improvement |
$191,805 |
56 |
91 |
2.2% |
4.9% |
7.1% |
13 |
SunTrust Banks |
STI |
$59.91 |
Regional Banks |
$28,865 |
57 |
91 |
2.6% |
4.5% |
7.1% |
14 |
Williams-Sonoma |
WSM |
$50.05 |
Specialty Stores |
$4,274 |
51 |
91 |
3.1% |
3.8% |
6.9% |
15 |
T. Rowe Price |
TROW |
$94.64 |
Investment Managers |
$22,930 |
84 |
91 |
2.4% |
4.5% |
6.9% |
16 |
Union Pacific |
UNP |
$117.02 |
Railroads |
$93,193 |
63 |
89 |
2.0% |
4.5% |
6.6% |
17 |
MetLife |
MET |
$55.04 |
Life/Health Insurance |
$59,132 |
77 |
88 |
2.9% |
3.6% |
6.5% |
18 |
Fifth Third Bancorp |
FITB |
$29.13 |
Regional Banks |
$20,642 |
73 |
88 |
2.2% |
4.3% |
6.5% |
19 |
PNC Financial |
PNC |
$137.75 |
Major Banks |
$65,851 |
65 |
88 |
2.2% |
4.2% |
6.4% |
20 |
Aflac |
AFL |
$84.12 |
Life/Health Insurance |
$33,247 |
58 |
87 |
2.1% |
4.1% |
6.3% |
21 |
Pfizer |
PFE |
$35.36 |
Pharmaceuticals: Major |
$210,893 |
53 |
87 |
3.6% |
2.6% |
6.2% |
22 |
Cisco Systems |
CSCO |
$34.09 |
Computer Comms |
$169,400 |
57 |
86 |
3.4% |
2.7% |
6.1% |
23 |
Wells Fargo |
WFC |
$56.03 |
Major Banks |
$280,364 |
54 |
86 |
2.8% |
3.2% |
5.9% |
24 |
Wal-Mart |
WMT |
$89.56 |
Discount Stores |
$265,264 |
77 |
85 |
2.3% |
3.6% |
5.9% |
25 |
Lockheed Martin |
LMT |
$310.02 |
Aerospace & Defense |
$89,134 |
56 |
84 |
2.6% |
3.1% |
5.7% |
26 |
HP |
HPQ |
$21.39 |
Computer Hardware |
$35,810 |
74 |
84 |
2.5% |
3.2% |
5.7% |
27 |
Gap |
GPS |
$26.08 |
Apparel/Footwear Retail |
$10,373 |
58 |
84 |
3.5% |
2.2% |
5.6% |
28 |
Eaton Vance |
EV |
$50.92 |
Investment Managers |
$5,952 |
59 |
84 |
2.4% |
3.2% |
5.6% |
29 |
Texas Instruments |
TXN |
$96.45 |
Semiconductors |
$95,392 |
82 |
83 |
2.6% |
3.0% |
5.6% |
30 |
Andeavor |
ANDV |
$109.55 |
Oil Refining/Marketing |
$17,217 |
80 |
82 |
2.2% |
3.3% |
5.5% |
31 |
Federated Investors |
FII |
$31.53 |
Investment Managers |
$3,208 |
76 |
82 |
3.1% |
2.3% |
5.4% |
32 |
U.S. Bancorp |
USB |
$54.48 |
Major Banks |
$91,485 |
52 |
81 |
2.2% |
3.2% |
5.4% |
33 |
HealthSouth |
HLS |
$48.03 |
Health Svcs |
$4,773 |
56 |
81 |
2.1% |
3.3% |
5.4% |
34 |
Johnson & Johnson |
JNJ |
$139.81 |
Pharmaceuticals: Major |
$375,572 |
57 |
81 |
2.4% |
2.8% |
5.2% |
35 |
Ford Motor |
F |
$12.43 |
Motor Vehicles |
$49,338 |
68 |
79 |
4.8% |
0.3% |
5.1% |
36 |
Bristol-Myers Squibb |
BMY |
$61.99 |
Pharmaceuticals: Major |
$101,852 |
61 |
79 |
2.5% |
2.5% |
5.0% |
37 |
Invesco |
IVZ |
$36.02 |
Investment Managers |
$14,720 |
55 |
77 |
3.2% |
1.6% |
4.8% |
38 |
Eastman Chemical |
EMN |
$91.46 |
Chemicals |
$13,098 |
65 |
77 |
2.2% |
2.5% |
4.8% |
39 |
Waste Management |
WM |
$82.05 |
Environmental Services |
$35,454 |
68 |
77 |
2.1% |
2.7% |
4.8% |
40 |
Intel |
INTC |
$46.50 |
Semiconductors |
$220,428 |
94 |
77 |
2.3% |
2.5% |
4.8% |
41 |
Gentex |
GNTX |
$19.56 |
Auto Parts: OEM |
$5,582 |
53 |
76 |
2.0% |
2.7% |
4.8% |
42 |
Occidental Petroleum |
OXY |
$67.63 |
Oil & Gas Production |
$51,960 |
71 |
74 |
4.5% |
0.0% |
4.6% |
43 |
Garmin |
GRMN |
$58.92 |
Telecom Equipment |
$11,070 |
76 |
74 |
3.5% |
1.1% |
4.6% |
44 |
C.H. Robinson |
CHRW |
$79.25 |
Air Freight/Couriers |
$11,163 |
77 |
73 |
2.3% |
2.2% |
4.4% |
45 |
FirstEnergy |
FE |
$32.70 |
Electric Utilities |
$14,502 |
59 |
73 |
4.4% |
0.0% |
4.4% |
46 |
Paychex |
PAYX |
$64.33 |
Data Processing Services |
$23,191 |
69 |
73 |
3.1% |
1.3% |
4.4% |
47 |
3M |
MMM |
$231.78 |
Industrial Conglomerates |
$138,587 |
73 |
72 |
2.0% |
2.3% |
4.4% |
48 |
Maxim Integrated |
MXIM |
$52.07 |
Semiconductors |
$14,733 |
74 |
72 |
2.8% |
1.6% |
4.4% |
49 |
Ryder System |
R |
$82.71 |
Finance/Rental/Leasing |
$4,389 |
75 |
72 |
2.2% |
2.1% |
4.3% |
50 |
Principal Financial |
PFG |
$68.37 |
Financial Conglomerates |
$19,892 |
58 |
71 |
2.8% |
1.4% |
4.3% |
Data source: FactSet
- Lead Analyst: Robert Reid, Senior Equity Analyst, Briefing.com
Yield Leaders content can be found on the Stock Ideas page, located within the Investing & Trading menu. On Live In Play, all of the Yield Leaders content can be searched for, and have alerts generated by, the "YIELD" ticker. Comments or suggestions? Please send them to rreid@briefing.com.
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