Beating the Street With Shareholder Yield

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Beating the Street With Shareholder Yield Companies with meaningful dividend yields and growing dividends often represent undervalued investment opportunities, with the added bonus that the dividend yield often serves as some protection against price declines. Companies can also repurchase outstanding shares. When a company reduces…

 

Dividends and Buybacks Drive Stock Returns

The return of capital by companies to shareholders is a key contributor to long-term returns. A forthcoming study by Morningstar’s Philip Straehl and Yale’s Roger Ibbotson attributes more than two-thirds of the real (inflation-adjusted) return in stock prices for the period of 1871 through 2014 to total yield. Return of capital includes both dividends and…

 

Finding Stocks With “Big and Safe” Dividends

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   What You Need to Know About Bond Yields to Determine Your Returns Current yield is simplistic to calculate, but other measures of yield can help you make better investment decisions. However, advisers and the media talk about yield on different investment products without necessarily…

 

Taking on Risk and Hoping the Strategy Doesn’t Backfire

Oh boy. There’s something new to be filed under the category of, “Well, it seemed like a good idea at the time.” It is cash secured puts on the S&P 500. According to The Wall Street Journal, pension funds in Hawaii and South Carolina are using the strategy to generate income. It is a strategy…

 

Using ETFs to Identify Quality Stocks

If one were to survey investors about what traits make a stock attractive, the top of the list would include an attractive valuation, a reasonable expectation of a price increase (particularly sooner rather than later), a sound underlying business model and good fundamentals. The first two traits are easy to identify: seek out below-average valuations…

 

Analyzing a Stock by Its Dividend and Shareholder Yield

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: High Buyback Yields James O’Shaughnessy, in the fourth edition of his book “What Works on Wall Street” found that stocks with the highest buyback yield (top 10%) outperformed the overall stock universe by an average of 3.2 percentage points a year from the start of 1927…

 

August 2016 AAII Journal Update

The August 2016 AAII Journal is Now Available Online.  Feature Article: The Individual Investor’s Guide to Exchange-Traded Funds 2016 Detailed return information and data on 473 exchange-traded products, including an overview of the current trends in the ETF industry.  Also in This Issue: Stock Strategies: Analyzing a Stock by Its Dividend and Shareholder Yield Both dividends…