GOLDMAN: Here Are The 19 Best Stocks For Fat Dividends And Huge Buybacks

S&P 500 companies paid out about $US800 billion in share buybacks and cash dividends last year, according to Stuart Kaiser and the research team at Goldman Sachs.

That figure is expected to rise to $US975 billion this year, for 22% growth in total shareholders return and cash yields of 5%.

“Cash return to shareholders continues to dominate investment discussions as share repurchase activity and activist campaigns drive outperformance at the stock level,” writes Kaiser.

We drew on Goldman Sachs’ latest report on dividend and buyback investment strategies, to highlight the 19 stocks with the highest total yield in Goldman’s 50-stock cash return basket. Total yield is a combination of the dividend yield and the effective yield generated by buybacks. Note: these 19 stocks are not intended to serve as a well-diversified portfolio.

Coca-Cola Enterprises: 14.0% total yield

Ticker: CCE

Sector: Consumer staples

Market Cap: $US12 billion

Buyback yield: 11.6%

Dividend yield: 2.4%

Description: Coca-Cola is a marketer, producer, and distributor of Coca-Cola products including Diet Coke, Sprite, Ocean Spray, Monster etc. and is headquartered in Atlanta, Georgia.

Source: Goldman Sachs

Interpublic of Companies: 14.3%

Ticker: IPG

Sector: Consumer discretionary

Market Cap: $US7 billion

Buyback yield: 11.3%

Dividend yield: 3.0%

Description: IPG is one of the big four global advertising holding companies and is headquartered in New York City.

Source: Goldman Sachs

L-3 Communications: 14.4% total yield

Ticker: LLL

Sector: Industrials

Market Cap ($B): $US10 billion

Buyback yield: 11.5%

Dividend yield: 2.9%

Description: L-3 Communications is an American company that provides Command, Control, Communications, Intelligence, Surveillance and Reconnaissance (C3ISR) systems and is headquartered in New York.

Source: Goldman Sachs

Tenet Healthcare: 14.7%

Ticker: THC

Sector: Healthcare

Market Cap: $US4 billion

Buyback yield: 14.7%

Dividend yield: 0.0%

Description: Tenet Healthcare is a Dallas-based company that provides healthcare delivery systems.

Source: Goldman Sachs

Dun & Bradstreet: 14.9%

Ticker: DNB

Sector: Industrials

Market Cap: $US4 billion

Buyback yield: 12.9%

Dividend yield: 1.9%

Description: Dun & Bradstreet is a New York city-based provider of commercial information.

Source: Goldman Sachs

Halliburton: 15.0% total yield

Ticker: HAL

Sector: Energy

Market Cap: $US49 billion

Buyback yield: 13.5%

Dividend yield: 1.4%

Description: Halliburton is an American multinational oil field services company.

Source: Goldman Sachs

Yahoo! Inc: 15.1% total yield

Ticker: YHOO

Sector: Information technology

Market Cap: $US36 billion

Buyback yield: 15.1%

Dividend yield: 0.0%

Description: Yahoo is an American multinational internet company headquartered in Sunnyvale, California.

Source: Goldman Sachs

Marathon Petroleum: 15.6% total yield

Ticker: MPC

Sector: Energy

Market Cap: $US26 billion

Buyback yield: 13.3%

Dividend yield: 2.3%

Description: Marathon Petroleum is an oil company.

Source: Goldman Sachs

SanDisk Corp: 16.1% total yield

Ticker: SNDK

Sector: Information technology

Market Cap: $US18 billion

Buyback yield: 15.1%

Dividend yield: 1.0%

Description: SanDisk designs and manufactures data storage devices such as flash drives.

Source: Goldman Sachs

Ameriprise Financial: 16.7% total yield

Ticker: AMP

Sector: Financials

Market Cap: $US20 billion

Buyback yield: 13.6%

Dividend yield: 3.1%

Description: Ameriprise is a financial planning company that is headquartered in Minneapolis, Minnesota.

Source: Goldman Sachs

VeriSign Inc: 17.2% total yield

Ticker: VRSN

Sector: Information technology

Market Cap: $US7 billion

Buyback yield: 17.2%

Dividend yield: 0.0%

Description: VeriSign offers an array of internet infrastructure services.

Source: Goldman Sachs

Assurant Inc: 17.3% total yield

Ticker: AIZ

Sector: Financials

Market Cap: $US5 billion

Buyback yield: 14.6%

Dividend yield: 2.7%

Description: Assurant is an insurance company based in New York.

Source: Goldman Sachs

Northrop Grumman: 18.0% total yield

Ticker: NOC

Sector: Industrials

Market Cap: $US26 billion

Buyback yield: 14.7%

Dividend yield: 3.4%

Description: Northrop Grumman is an aerospace and defence technology company headquartered in Virginia.

Source: Goldman Sachs

NVIDIA Corp: 18.4% total yield

Ticker: NVDA

Sector: Information technology

Market Cap: $US10 billion

Buyback yield: 15.9%

Dividend yield: 2.4%

Description: NVIDIA is an American technology company that develops graphic chips and is based in Santa Clara, California.

Source: Goldman Sachs

Pfizer Inc: 18.9% total yield

Ticker: PFE

Sector: Healthcare

Market Cap: $US205 billion

Buyback yield: 15.3%

Dividend yield: 3.6%

Description: American multinational pharmaceutical company Pfizer is headquartered in New York City.

Source: Goldman Sachs

Seagate Technology: 20.8% total yield

Ticker: STX

Sector: Information technology

Market Cap: $US18 billion

Buyback yield: 17.0%

Dividend yield: 3.8%

Description: Seagate Technology is a computer storage company headquartered in Cupertino, California.

Source: Goldman Sachs

Viacom Inc: 21.0% total yield

Ticker: VIAB

Sector: Consumer discretionary

Market Cap: $US37 billion

Buyback yield: 18.9%

Dividend yield: 2.1%

Description: Viacom is an American entertainment content company headquartered in New York city.

Source: Goldman Sachs

ADT Corp: 23.1% total yield

Ticker: ADT

Sector: Industrials

Market Cap: $US5 billion

Buyback yield: 22.1%

Dividend yield: 1.0%

Description: ADT Corp provides electronic security and fire protection services and is based in Boca Raton, Florida.

Source: Goldman Sachs

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