economy
Play defense with these dividend payers that consistently buy back their own shares, says Wolfe Research
The firm highlights companies that have at least a 10-year track record of repurchasing shares. Certain names also pay dividends.
TL;DR
- Wolfe Research suggests focusing on companies with a history of stock buybacks for defense in a volatile market.
- Their "Consistent Buybacks" basket comprises companies that have reduced share count for at least 10 consecutive years.
- This strategy is believed to perform well throughout market cycles, including recessions.
- Companies like Best Buy, Colgate-Palmolive, JPMorgan Chase, and Honeywell are highlighted for consistent buybacks and dividend yields.
- Best Buy offers a 5% dividend yield and has a 13-year consecutive dividend raise streak.
- Colgate-Palmolive is a Dividend Aristocrat with a nearly 2.4% yield and a new $5 billion share repurchase program.
- JPMorgan Chase, with a 1.8% dividend yield, is considering significant acquisitions.
- Honeywell yields about 2.1% and is spinning off its aerospace business to focus on automation.