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GOLDMAN SACHS: These 14 companies are set to return the most cash to investors this year
Reuters / Darren Whiteside
For investors uncertain about the future of the market, it can be comforting — if not downright lucrative — to seek out companies that can be counted upon for regular cash payouts.
That means firms offering both dividends and buybacks, and there's serious value in knowing which ones are the most likely to engage in either activity.
That's where Goldman Sachs comes in.
The firm maintains an index of S&P 500 companies spanning nine sectors that have offered the highest yield from share repurchases and dividend payments over the past 12 months.
It's worth noting, however, that while investing in companies for their cash distributions is a relatively risk-averse way to grind out returns, it's not necessarily a strategy that will keep pace with the broader market. It can actually struggle in a rising-interest-rate environment as bond yields get more competitive, says Goldman.
Still, knowing which companies fall into the high-cash-return category can be valuable when constructing a portfolio. So without further ado, here are the 14 companies best positioned to return the most money to shareholders going forward:
Markets Insider
Ticker: STX
Industry: Information technology
Market cap: $17 billion
Year-to-date return: 45%
Trailing 12-month yield: 11.6%
Markets Insider
Ticker: HUM
Industry: Healthcare
Market cap: $41 billion
Year-to-date return: 19%
Trailing 12-month yield: 11.8%
Markets Insider
Ticker: XL
Industry: Financials
Market cap: $14 billion
Year-to-date return: 59%
Trailing 12-month yield: 12.2%
via Business Insider https://ift.tt/eKERsB
May 5, 2018 at 04:39PM
Reuters / Darren Whiteside- In times of market turbulence, it can be helpful for investors to pinpoint stocks that will offer reliable cash distributions.
- Goldman Sachs has identified the 14 S&P 500 companies poised to return the most cash to shareholders via buybacks and dividends.
For investors uncertain about the future of the market, it can be comforting — if not downright lucrative — to seek out companies that can be counted upon for regular cash payouts.
That means firms offering both dividends and buybacks, and there's serious value in knowing which ones are the most likely to engage in either activity.
That's where Goldman Sachs comes in.
The firm maintains an index of S&P 500 companies spanning nine sectors that have offered the highest yield from share repurchases and dividend payments over the past 12 months.
It's worth noting, however, that while investing in companies for their cash distributions is a relatively risk-averse way to grind out returns, it's not necessarily a strategy that will keep pace with the broader market. It can actually struggle in a rising-interest-rate environment as bond yields get more competitive, says Goldman.
Still, knowing which companies fall into the high-cash-return category can be valuable when constructing a portfolio. So without further ado, here are the 14 companies best positioned to return the most money to shareholders going forward:
14. Seagate Technology
Markets Insider
Ticker: STX
Industry: Information technology
Market cap: $17 billion
Year-to-date return: 45%
Trailing 12-month yield: 11.6%
13. Humana
Markets Insider
Ticker: HUM
Industry: Healthcare
Market cap: $41 billion
Year-to-date return: 19%
Trailing 12-month yield: 11.8%
12. XL Group
Markets Insider
Ticker: XL
Industry: Financials
Market cap: $14 billion
Year-to-date return: 59%
Trailing 12-month yield: 12.2%
via Business Insider https://ift.tt/eKERsB
May 5, 2018 at 04:39PM
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