4 Stocks With Impressive Shareholder Yield to Safeguard Your Portfolio

Core Concept - Shareholder yield is a comprehensive metric that includes dividends, share buybacks, and debt reduction, providing a holistic view of how companies return value to investors [1][3]. Investment Strategy - Investors should consider shareholder yield as a key factor in stock selection, focusing on companies that effectively distribute excess cash, which often leads to strong financial performance and long-term value [2][4]. - Industries with strong cash flow generation, such as technology, financial services, and consumer goods, typically exhibit high shareholder yields [5]. Shareholder Yield Calculation - Shareholder yield is calculated as the sum of dividend yield, net buyback yield, and net debt paydown yield, offering a fuller picture of capital allocation [3]. Payout Ratio - A sustainable payout ratio, typically below 60%, is preferred as it balances rewarding shareholders with maintaining financial flexibility [6]. Company Highlights Verizon Communications (VZ) - VZ offers a dividend yield of 6.21% with an annualized dividend growth rate of 2% and a payout ratio of 59%, indicating sustainable long-term financial health [8][11]. - The company reduced its long-term debt from $123.1 billion in 2020 to$121.4 billion in 2024 and has an authorized share buyback program for up to 100 million shares [9]. Suncor Energy (SU) - SU provides a dividend yield of approximately 4.3% with an annualized dividend growth rate of 22.3% and a payout ratio of 41%, reflecting a commitment to sustainable income [11][12]. - The company reduced its long-term debt from $10.3 billion in 2020 to$6.82 billion in 2024 and repurchased approximately 55.6 million shares [12]. Canadian Natural Resources Limited (CNQ) - CNQ boasts a dividend yield of around 5.41% with an annualized dividend growth rate of 25.6% and a payout ratio of 63%, indicating a strong capital allocation strategy [14][15]. - The company reduced its long-term debt from $15.01 billion in 2020 to$6.17 billion as of September 2024 [15]. VALE - VALE offers a competitive dividend yield of around 7.41% with an annualized dividend growth rate of 10.5% and a payout ratio of 58%, demonstrating effective capital allocation [17][19]. - The company reduced its long-term debt from $17.3 billion in 2020 to$15.59 billion as of September 2024 and has repurchased about 20% of its outstanding shares since 2021 [18][19].