100% Shareholder Yield-Generating Stocks

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Jan 23, 2015

The maximum benefit that a company can give its shareholders and investors is shareholder yield. If you are an investor, the first and foremost thing that you will look forward to in a company is the yield % that you get. Other factors like the brand power of the company, its growth rate, dividend pay-out ratios, etc., play second fiddle when compared to yield rates. If you want to make some quick bucks out of the stock market within a reasonable time frame, you should focus on stocks that have promising yield rates. The following are some of the stocks that would add value to shareholders’ worth to a great extent within a relatively definite long term time span.

Hess Corporation

Hess Corporation (HES, Financial) is one of the most stable companies in the energy sector. Hess has been enjoying a great reputation among its shareholders because it has an impressive yield rate. In the past year, Hess has paid out close to $21.1 billion worth of exploration stock to its shareholders. It cannot be denied that the share prices of Hess have been affected adversely due to the dip in oil prices. The current balance sheet figures of Hess’ cash and investment values are around $4.2 billion, and this is one of the main reasons as to why Hess is able to return a good yield rate to the shareholders even when the scenario is not favourable to its energy sector. Hess’ business strategy will surely pay off in 2015 as well, and shareholders will get to enjoy good returns from them. From the chart below, it is evident that throughout 2014, EPS of Hess consistently outperformed the forecasted figures.

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General Electric

General Electric (GE, Financial) is one of the biggest conglomerates in the world today as they are into the business of manufacturing a wide variety of products. GE’s has one of the highest dividend yield rates among all its counterparts today – 3.86%, which makes it the topper in the Dow Jones Industrial Average list. The company’s involvement in various sectors like finance, manufacturing, consulting, technology sharing, medical equipment manufacturing and many more makes GE one of the biggest names in the industry today. For the last year alone, the dividends paid out by GE to its shareholders totalled up to $7.82 billion. GE was able to extinguish debts worth $22.9 billion during 2014, which has helped it to maintain its impressive shareholder yields. The following is the EPS history of General Electric for the last few months.

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NetApp

In this net-savvy world, there is always a demand for storage space and devices related to this. This is where NetApp (NTAP, Financial) stands to gain a lot because it is the market leader in this segment. These storage equipments can be installed in any technological device, which makes it one of the first choices for people who are in need of additional storage. Since it can be used with all kinds of devices from manufacturers across the world, NetApp occupies an enviable position in this industry. Innovation has been the forte of NetApp and it has continuously invested in new technology over the years. The company’s quality of software and hardware helps NetApp to increase its profit margins reasonably well.

Over the last year, NetApp has paid out close to 11.45% of its market capitalisation through stock buybacks and dividends. The balance sheet of Net App shows cash and investments worth $3.8million, which presents a very healthy picture for the company. This chart shows the forecasted annual growth % of NetApp in the coming years.

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Conclusion

Dividends, stock buybacks and other forms of returns to the shareholders in cash or equity are the major contributors of shareholder yields of a company. A company that has impressive shareholder yields is the one that enjoys the highest reputation among its investors and shareholders. The above-mentioned companies are the best in their respective industries, and they pay out to their shareholders, a reasonable amount of yields on a consistent basis. The financial health of these businesses is strong enough for the secure future of these businesses and hence investors can be assured of long term gains when they invest in these.